Suspicious transfers before bankruptcy?

sleeplessmess · 9 October 2017 at 11:49PM

Long time lurker, first time poster!

Hi all,

I'm considering bankruptcy in the near future. (currently 36 weeks pregnant so not just yet!)

I've made some terrible shameful mistakes combined with severe mental health issues and hopefully one day soon will have the courage to post about the mess of my entire situation but for now I have a question.

I have an HSBC current account. I was homeless from November 2016 to May 2017. In March 2017 I lost my bank card and without an address for new bank card, plus HSBC being one of my major creditors I was too afraid to speak to anyone and just transferred money out of that account via automated telephone banking to friends for them to withdraw the money for me.
This went on until just this past week when I've finally opened a basic account with Lloyds.

How will this effect my application for bankruptcy when the time comes? Will it look like I'm giving money away? It's going to look ridiculous to the OR isn't it?
I guess I can only hope that as there are no other cash withdrawals at cash points during that time that my explanation will be believed? I had my card details saved to the website I bought contact lenses from so used it in that way too.

This is only one small part of the mess I've got myself into but hopefully any advice on this issue might help me sleep tonight.

Thanks for being kind in advance!

StopIt · 10 October 2017 at 7:59AM

It's going to be something to explain to the OR, yes, but as long as you're open and honest, I don't see it being much of an issue, unless if the amounts were very significant.

debt_doctor · 10 October 2017 at 8:52AM

StopIt wrote: »

It's going to be something to explain to the OR, yes, but as long as you're open and honest, I don't see it being much of an issue, unless if the amounts were very significant.

Hi, It is exactly as described here. Also, if they are willing, you have witnesses.
DD

sleeplessmess · 10 October 2017 at 7:29PM

Thanks for the reply

I'm already considering giving up on bankruptcy because of all this and hoping for an IVA now!

Keeping positive!

debt_doctor · 10 October 2017 at 9:25PM

sleeplessmess wrote: »

Thanks for the reply
I'm already considering giving up on bankruptcy because of all this and hoping for an IVA now!

Keeping positive!

Hi, unless you have substantial assets to protect or are in a profession where you can't go bankrupt an IVA could be a costly choice.
The things you described are not an issue in bankruptcy.

What do you think an IVA can give you?
DD

StopIt · 11 October 2017 at 7:47AM

An IVA is only beneficial if you are a homeowner, or other asset holder.

An IVA has the same impact as a bankruptcy in your credit files, and counts as a form of insolvency. Also, it requires payments for 6 years, can fail, putting your debts back where they were before the IVA started.

Without a full SOA, we cannot assist further.

Suspicious transfers before bankruptcy?

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