Saving Money?

G-G_4

Hi everyone,
Just got my pack from the OR through today and I have my telephone interview next wednesday.. I will be glad to get it out of the way before xmas

Just one question after reading the leaflets.

I am unemployed and I don't think I will be getting a job before my bankruptcy is up. I used to be self employed and am planning on going back to that after bankruptcy is over.

I read in the documents that if you have money in your new bank account that the OR deems more than you need for living expenses they can take it.

Thing is I wanted to save some money. Selling old bits on eBay etc, not really a job though, just something to keep a little money coming in. I wanted to save about £1000 - £2000 in the year of my bankruptcy so that I can start up buisness again at the end. Can I do this?

I'm confused, I thought it was a fresh start and I could do what I wanted with my money now, but I guess the OR will see it as an income?

Any suggestions?

NekoZombie

Bankruptcy *is* a fresh start, once you've been discharged. I advise you shelve these plans until your discharge, as saving that amount of money will certainly raise questions.

G-G_4

Do they monitor your new account as such?

I know they will want to look at previous account and credit cards etc.. But I thought they would not be interested in your new current account.

Not quite sure what to do really. My other half can support me completely and we are going to try for a baby as he runs his own business that is going well. But I still wanted to make my own money on one side to prepare for the future, and either use it for setting up a business again or for a baby if we have one.

Migz

But a good question G-G, I was thinking of having a clear out, not that I have much left yet alone to sell, but the thought did go through my head, and ebay is one mans junk another man gold
Are you not allowed to sell anything at all until you are dischanged then? am just curious too now. Thanks

Migz

NekoZombie

Its not that you're not allowed to sell anything - its just that savings of 1 - 2 k will probably cause the OR to review your income & expenditure. I'm sure if you were to sell and spend and the same time, it wouldn't be so much of an issue. They can request to look at your new account statement if they want to, so I wouldn't take the risk.

G-G_4

Thanks Neko,

Good advice..

I just can't bear the thought of any of my money going back to the creditors.. it would kill me to think I was giving them any of my money back at this stage. They have ruined my life and business. I know I can't blame them entirely, as it was me that was silly by spending the money.. but, I still think I was put in a tempting position in the first place.. anyhow.. that's another argument. :rolleyes:

I think I will sell stuff and buy stuff with the money I have earnt and take out some in cash and stash it in a piggy bank or something. I can always say I didn't trust my elctron card to work at the supermarket and liked to have cash in my wallet. & at the end of the bankruptcy I can put it back in to my bank.

Thanks for the help..

Gemma

Broken_hearted

Why would it kill you to pay any money back, surely you would feel better working on your career and rebuilding your life.

G-G_4

I guess I feel that it has already taken so much from me.. I have been paying extortionate interest and fees for years now, and I think they have probably had their money twice over by now... so yeah, I guess it would really irritate me to give them anything more.

I know everyone sees that issue differently, but for me it is quite simple.. I don't want them to get another penny from me. If I have to put things on hold for a while then so be it.. Sorry if this sounds pig-headed.. but I've been in debt since I was 16 and it's made me quite upset over the years. All the money I have ever earnt has gone on debts..

Also, if I am going to have a business again I need to save money beforehand, which is what I was going to do this year. I guess I will have to save in cash instead of a lump sum in the bank though..

Migz

NekoZombie wrote: »

Its not that you're not allowed to sell anything - its just that savings of 1 - 2 k will probably cause the OR to review your income & expenditure. I'm sure if you were to sell and spend and the same time, it wouldn't be so much of an issue. They can request to look at your new account statement if they want to, so I wouldn't take the risk.

Ah I see thank you, I just wanted to be sure, the last thing I want to do at this stage after everything else is to get into trouble. Be lucky if I got 1-2 £ or the few old cd's yet alone make 1-2 k.

But can I ask, I know you say that you don't want you creditors to have another penny, and I can understand that from the hounding you must have had as a lot of us have been through, that would be the case, but it does seem a little odd that after going BR you could save 1-2 k in a year, I know for sure I wouldn't be able to, but I do agree this would raise the eyebrows or the OR... please don't take offence by my question, but if you can save this amount for a new business, why couldn't you have carried on paying your debts with it?

Migz

G-G_4

Hi there,

I don't mind you asking at all..

With my debts before, I was paying out £1300 a month, and earning about £1000 a month being self employed. & the £1300 was just on debts and not cost of living etc.. so outgoing were probably £1600, and earning £1000 and the earnings could be erratic as it depended how busy I was that month. So as you can see, I earnt an alright amount, but with the debt I was losing money each month.

I didn't want an IVA, I wanted to get rid of the debt and start afresh.

None of my debts, apart from a 2.5k eBay fees bill was to do with my business, so I can earn money being self employed still.. I just don't want to give anything away again.

My OH supports me and pays for bills etc, and so I can image that most of my money would go on an IPA, so i'm not exactly motivated to earn money.

I was going to just get back into selling a few bits here and there, but nothing much, basically just to keep me afloat..

I'm not sure what to do though, anything I earn will be taken from me as I don't have any bills to pay as such. & if I said I paid money towards the house (which is in my boyfriends name) then they may claim I have beneficial interest, which would be our worst nightmare, so I am being careful with that side of it..

Migz

Right I see now where you are coming from, kind of stuck between a rock and a hard place, and I know that feeling very well, for many different reasons!! I was reading a similar post somewhere of someone in similar situation to yourself, and they were saying the OR had suggested off the record that it might be better to stay unemployed untill discharge!... But on a brighter note, it may not be a year, there is the chance however remote it seems sometimes, of early discharge.

Well I wish you all the best for you OR interview next week, hope mine gets in touch soon!!

Migz