Ask a StepChange debt advisor a bankruptcy question

fatbelly

JCS1 said:

one other possible solution, would be to use the £20k to use as full and final offers to settle the loans?

sounds a better plan to me

StepChange_Aidan

beth3735 said:

I have been approved on Monday for my bankruptcy, am I allowed to withdraw cash from my bank for day to day spending please within the next year?

Hi Beth,

Thanks for your post.

When you go bankrupt your accounts will normally be frozen for a few days while the Official Receiver does their initial checks. If your account is in credit, I’d recommend withdrawing the cash to cover your living costs during this time.

If you have an ordinary current account, it may be closed, or you might have to downgrade to a basic account. If you already have a basic bank account, you should be able to continue using it as normal once it has been unfrozen.

There’s some more information on how bank accounts can be affected by bankruptcy here.

I hope this helps,

Aidan

Harry401

The OR would expect you to account for the £20k, and you also also need to pay the creditors on a pro-rata basis.  The other option is to keep the £20k in your bank account, and then remit to the OR in due course as an asset.

one other possible solution, would be to use the £20k to use as full and final offers to settle the loans?

Yes but if I said I gambled it what is the repercussions? 

JCS1

Harry401 said:

The OR would expect you to account for the £20k, and you also also need to pay the creditors on a pro-rata basis.  The other option is to keep the £20k in your bank account, and then remit to the OR in due course as an asset.

one other possible solution, would be to use the £20k to use as full and final offers to settle the loans?

Yes but if I said I gambled it what is the repercussions? 

A bankruptcy restriction order for up to 15 years plus potential court proceedings for hiding assets (Boris Becker is biggest recent example)

Harry401

A bankruptcy restriction order for up to 15 years plus potential court proceedings for hiding assets (Boris Becker is biggest recent example)

C’mon now Becker owed 50m when he went bankrupt and was jailed for 2.5 years.

fatbelly

It's one way to avoid the cost of living crisis

https://www.theguardian.com/sport/2022/oct/19/slimmed-down-boris-becker-reportedly-teaching-yoga-in-prison

JCS1

Harry401 said:

A bankruptcy restriction order for up to 15 years plus potential court proceedings for hiding assets (Boris Becker is biggest recent example)

C’mon now Becker owed 50m when he went bankrupt and was jailed for 2.5 years.

No one on here is going to tell you it is OK to hide a 20k asset. 

StepChange_Patience

Harry401 said:

The OR would expect you to account for the £20k, and you also also need to pay the creditors on a pro-rata basis.  The other option is to keep the £20k in your bank account, and then remit to the OR in due course as an asset.

one other possible solution, would be to use the £20k to use as full and final offers to settle the loans?

Yes but if I said I gambled it what is the repercussions? 

Hi there

Thanks for getting back in touch. 

There are a few restrictions they could look at if they felt that someone has acted dishonestly, for example they may not allow someone to borrow more than £500 without stating you're subject to restrictions when applying, work in various posts or certain contracts in the health industry, certain roles in education or public authorities. 

These restrictions can last from 2 to 15 years, are listed on the Individual Insolvency Register which is public information and on the Bankruptcy Restrictions Search Facility for 3 months.

As others have mentioned, it's important to be honest with the Official Receiver and worth seeking debt advice if you haven't done so already. 

StepChange provide free and impartial advice, you can find out more information here.

I hope this helps.

Patience

Shadow2512

Hello I am applying for bankruptcy and just completed my breathing space application with stepchange. I'm starting my BR application so I can pay the fee in installments. On the application it asks for the date the debt was incurred. Is this the date I took out the original credit or the date I defaulted? It does narrow it down to years so if it is the date I defaulted all my debts will be the last 1-2 years. Thank you

Shadow2512

I have an additional question, I currently work alot of overtime but once my bankruptcy fee is paid I intend to stop this. I am a single parent and luterally spend no time with my child due to my overtime and it is really affecting my mental health. On my income do I put my basic salary with no overtime then explain to the OR about overtime once I'm in contact with them? Thank you