Bankruptcy and savings
stepha4
Posts: 33 Forumite
Hi.
I spoke with Stepchange last week and they said my only option is bankruptcy as my income is so low.
My question is, I have about £1400 in a savings account which I’ve had as an emergency fund in case the car blew up or such like. Can I take this out and keep for living expenses once I’m bankrupt?
Also, through work I put money into a savings pot that comes out every three years. I can pull this at any time and get my money back back that I’ve put in, which I assume I’ll have to do as part of the BR? The problem I have is that my parents and brother put into it aswell. Am I allowed to pull the money out and give them back what they’ve put in? I can show their payments to me on my bank statements for the past 3 years.
Thankyou. I know this is the right decision but it feels incredibly daunting at the moment and the thought of telling my parents is making my anxiety go through the roof!
I spoke with Stepchange last week and they said my only option is bankruptcy as my income is so low.
My question is, I have about £1400 in a savings account which I’ve had as an emergency fund in case the car blew up or such like. Can I take this out and keep for living expenses once I’m bankrupt?
Also, through work I put money into a savings pot that comes out every three years. I can pull this at any time and get my money back back that I’ve put in, which I assume I’ll have to do as part of the BR? The problem I have is that my parents and brother put into it aswell. Am I allowed to pull the money out and give them back what they’ve put in? I can show their payments to me on my bank statements for the past 3 years.
Thankyou. I know this is the right decision but it feels incredibly daunting at the moment and the thought of telling my parents is making my anxiety go through the roof!
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Comments
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Technically all savings are assets and will be claimed. When do you plan to go BR? Do you need anything at the moment? Is the washing machine about to give up - do the kids need new school shoes or do you need a winter coat? If you are not planning to go BR for a few weeks/months you could drip the savings money into the family budget on things that are reasonable domestic expenditure.
With the savings pot - all you can do is speak to the OR about the fact you have family money in it and provide the evidence they contributed.
Most BR's have used up their savings by the time they go BR.0 -
I think I would make sure the car goes in for a good service. Anything that is likely to wear out in the next year gets replaced. Assuming that you have a strong argument for keeping the car in bankruptcy, and it isn't worth more than the current limit.Save £12k in 2024 #29
January take lunch to work goal - 13 of 190 -
Spend it on something useful for your bankruptcy year THEN go bankrupt!
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£680 of that can be used to pay the bankruptcy fees (if you haven't already), so theoretically there is only £720 left as savings. As others say, if anything is starting to fall apart (washing machine etc...) then perhaps it's time to replace it before bankruptcy.I may be wrong sometimes, I learn a little every time I'm corrected.0
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