Bankruptcy questions

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After months of worry, I finally applied and was declared bankrupt 2 weeks ago. I’m due to have ‘the telephone interview’ and was wondering how much depth I need to go into with the OR.   Also, I took a cash advance on a credit card to help fund a business (solely in my husbands name) should I be honest about this? the aim was to pay it back as soon as possible, from the new business… and i was able to pay the CC monthly payments initially then the cost of living  crisis hit and business started to fail, I had to live on credit etc etc  Will i be penalised for doing this? 
I’m so worried about the whole situation. 
Thanks in advance for any advice
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  • MalMonroe
    MalMonroe Posts: 5,783 Forumite
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    Hi, yes just be honest. Answer the questions you are asked.

    If you haven't already, you could contact one of the free debt help agencies for some help - StepChange, National Debtline or Citizens Advice.

    I contacted StepChange when I was in trouble and they helped me to get a DRO - different I know - but they were able to help and advise all the way through the process.

    Just speaking to someone who knows what they are talking about can really help and put your mind at ease. Here's the StepChange information -

    https://www.stepchange.org/clients/bankruptcy-clients.aspx

    You've taken the biggest step, now you could just do with a bit of reassurance. StepChange advice is free, non-judgemental and really helpful.

    Good luck with it all. 
    Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.
  • cymruchris
    cymruchris Posts: 5,320 Forumite
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    After months of worry, I finally applied and was declared bankrupt 2 weeks ago. I’m due to have ‘the telephone interview’ and was wondering how much depth I need to go into with the OR.   Also, I took a cash advance on a credit card to help fund a business (solely in my husbands name) should I be honest about this? the aim was to pay it back as soon as possible, from the new business… and i was able to pay the CC monthly payments initially then the cost of living  crisis hit and business started to fail, I had to live on credit etc etc  Will i be penalised for doing this? 
    I’m so worried about the whole situation. 
    Thanks in advance for any advice
    Don't feel too apprehensive about the telephone interview - they are just fact-finding to understand the circumstances that led to your bankruptcy, and not to judge you or your actions. Be honest with them, don't try to hide anything. If they believe you've been dishonest or covered anything up, they have the option of extending your bankruptcy up to 10 years (It's rare that it happens - and usually for the right scallywags of society rather than those that have made honest mistakes and difficult decisions).

    The money you took out on your credit card you say went to your husbands business - was this imminently before declaring bankruptcy or some time prior? What sort of value was it? They can take a look through your accounts for any significant cash withdrawals/movements and ask the reason for making them.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • worriedsick
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    The money was taken out a good 8 months before i started to struggle, and it was for £7k 

    Diolch 
  • RAS
    RAS Posts: 32,797 Forumite
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    The money was taken out a good 8 months before i started to struggle, and it was for £7k 

    Diolch 
    In which case, you action seemed reasonable at the time.

    Any evidence that you were initially able to meet the payments initially?
    The person who has not made a mistake, has made nothing
  • worriedsick
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    Yes, managed to keep up with payments on everything up until about june last year. then things went downhill. 
  • cymruchris
    cymruchris Posts: 5,320 Forumite
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    Based on the above it's not something I'd either worry about, or try to hide if asked. With it being months ago, they may not even want to know any detail. They're more interested in scrutinising those that withdraw to the max a week before bankruptcy.

    Just work your way through their questions, and I'm sure you'll be fine. It is a bit nerve-racking - especially as you've not experienced it before, but remember they're just gathering info on how you got yourself to where you are, and are not trying to catch you out.
    An ex-bankrupt on a journey of recovery. Feel free to send me a DM reference credit building credit cards from the usual suspects :) Happy to help others going through what I've been through!
  • flipflopflo
    flipflopflo Posts: 485 Forumite
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    The other tip is that they will be silent at times as they are writing things down, don’t feel the need to fill in those silences with babble. Answer the questions asked and don’t feel the need to expand beyond what they have asked. 
  • worriedsick
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    Thanks all for the advice. Another question is - i took a loan out to buy a car, and no linger have the car. Will this be an issue? 
  • fatbelly
    fatbelly Posts: 20,690 Forumite
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    The other tip is that they will be silent at times as they are writing things down, don’t feel the need to fill in those silences with babble. Answer the questions asked and don’t feel the need to expand beyond what they have asked. 
    This is very good advice in any court situation or similar. Just listen to the question and answer it as briefly as possible. If it's a yes/no question, just say 'yes' or 'no'
  • fatbelly
    fatbelly Posts: 20,690 Forumite
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    Thanks all for the advice. Another question is - i took a loan out to buy a car, and no linger have the car. Will this be an issue? 
    Did you sell it at a market price?
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