Bankruptcy questions 1 March at 5:03PM in Bankruptcy & living with it 12 replies 348 views

worriedsick

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

MalMonroe

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. 

cymruchris

worriedsick said:

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.

worriedsick

The money was taken out a good 8 months before i started to struggle, and it was for £7k 

Diolch 

RAS

worriedsick said:

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?

worriedsick

Yes, managed to keep up with payments on everything up until about june last year. then things went downhill. 

cymruchris

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.

flipflopflo

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

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

flipflopflo said:

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

worriedsick said:

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?