Spending Assets Before Bankruptcy (With No Debts)
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markstone
Posts: 1 Newbie
I do not have any debts or loans to anybody but have some ongoing legal action against me which if I end up losing in court will most likely result in me having to go bankrupt as the judgement against me would be higher than my assets.
I don’t know for certain that I will lose and even if I do I may be able to make an arrangement with the other party - however there is a chance I would have to go bankrupt.
So, the question is: I have money and assets at the moment, if I spend it all (on holidays or clothes or whatever I fancy) will that be frowned upon should I need to go bankrupt in the future? I may never go bankrupt so how do I know if I can spend my own money without fear or being punished?
Mark
I don’t know for certain that I will lose and even if I do I may be able to make an arrangement with the other party - however there is a chance I would have to go bankrupt.
So, the question is: I have money and assets at the moment, if I spend it all (on holidays or clothes or whatever I fancy) will that be frowned upon should I need to go bankrupt in the future? I may never go bankrupt so how do I know if I can spend my own money without fear or being punished?
Mark
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You are not bankrupt so there is no issue at present.
You cannot live your life on maybes and what ifs.
Application for Bankruptcy is pretty much a sure thing, all that may happen is you get a BRO (bankruptcy restrictions order) for up to 15 years (worst case scenario).I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
I was like you and tried to fight the case. Do yourself a favour and try to settle ASAP. Lawyers fees alone will eat away at your savings. How much are you being sued for?? Make them a low offer to settle and see what they come back with. Our case tumbled on for years.0
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