Issues and questions that come up during your bankruptcy period

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By indy2005
#201545 Hi,

I won 10K on lottery last year at work. It went towards living expenses, a holiday in EuroDisney in February and generally made the last 10 months on my debt management plan more manageable. As the money is gone I didnt list it, I also had no statements from the account the money went into. The money was passed to my wife for her to manage. As an ex-gambler having 10K is dangerous (she even receives my salary into her account and has done for 2 years).

I didnt list this anywhere and had no statements to hand over. I assumed they would ask for this statement from the bank and then I would get questions. I havent been asked about the money, but have now received a 12 month statement since the account was closed which I havent forwarded to the OR yet, assuming they would already have it.

My OR is now asking for any additional information on my financial affairs and now I am worried about having to explain a 10K trannsfer to my wife last August. The money is gone, I am worried they will chase my wife for the 10K. But the money went on living expenses, a holiday and in helping us with the DMP payments (i.e. allowed us to live "normally"). Any advice appreciated.

Send the statement in and wait for questions.

Send statement in explaining where the money came from and where it went.

Dont send it in, as they can get it themselves if they need it.



Regards

i
By indy2005
#201546 I should add that I believe the OR is now asking for additional information as he is preparing a report as part of the BRO process to the secretary of state and guess he wants as much info as possible to put in the report.
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By scotcrew
#201559 The thing is Indy, if it's gone, it's gone. What can the OR do if it isn't there anymore. If he is going to slap a BRO on you then what does it matter - just tell him you put it all on Black
By indy2005
#201572 Hi,

Its the fact it went to my wife and now its gone. i.e. in the last 10 months 10K was transferred to my wife and now I am BR. I cant prove its gone anywhere other than to my wife. My wife could show its gone, but then she would have to give access to her statemements. They only have my word for it that its gone.

I might not even mention it, just send the statement through and see if they question it.

Then again, I may not even send the statement. It has come since I filled in my SOA so I did not hide it, and they can get hold of it if they need to.

In the back of my mind I think they may somehow force my wife to give back the money and force her into BR. I have read of similar situations where a son gave his mum the rent money he owed her and then went BR. They started chasing the mum for the monies back.

Regards

i
By Redman
#201622 Its like Scotscrew said, what is done is done. If you are now bankrupt the last thing you want to be doing is giving the OR any reason to delve deeper. Tell the truth.
By indy2005
#201626 Hi,

I will certainly tell the truth if asked, but the question is do I wait to be asked about the transactions they see in the savings account out to my wife or do I say "errrr Mr OR, I thought I should tell you about money I spent but dont have which I won last year". I am happy to answer any questions they ask of what happened to a 10K deposit marked "lottery" into an account last year.....but dont see why I should offer it without being asked first.

In my SOA I didnt list it as an asset (its gone), I answered no to "is anyone holding any money for you"...(its gone). As far as I am concerned I have told the truth. Isnt it up to them to dig into my affairs and ask me questions on anything they want clarification on. I think its fair enought that a cash strapped family of four on a DMP paying 600 a month to Payplan, spent 10K over the course of 10-12 months. It isnt as if I withdrew 10K cash in May 2008 the week before I went BR.

Does my quandry make sense?!

Regards and thanks

i
By Southernguy1976
#201726 Hi,

The OR is just doing their job and making sure your not hiding any asset from them. During your time in bankruptcy the OR has the right to ask, look at anything they might seems as being hidden from them. They do have to power to overturn actions but i believe that is very rare what they will do is enforce BRO/BRU on people for x amount of years.
By indy2005
#201733 Hi,

Thanks. The only way to prove its spent is for them to force my wife to reveal her bank statemements. Happy to do this, but can they?

Regards

i