Questions you have before making a decision to go Bankrupt and the Bankruptcy process

Moderators: TalbotWoods, JaneClack

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By steveo
#7550 i have my appointment at the court on monday (13th june) for my bankruptcy.

one worry i have is that last year i recieved a lump sum of £8000 which the bank "took" a portion to repay a loan with them that was behind on payments.

according to my bank statments they took £900 out at the start of june last year to cover missed payments, and then took out another £3200 on the 30th june 2004 to pay off the loan in full.

i was not too bothered at the time as i was happy for the bank to pay off the £4000 or so remaining on the loan so i could put that part of my life behind me and move on.

however the bank account was a joint one and so to was that loan with a former partner. the account is now closed.

what i am worried about is that the OR may see that as preferential payment to a creditor and take the money off the bank. this, as far as i know, would leave the ex-parnter liable to re-pay the loan to the bank as the original loan agreement had their name on it as well.

do you think this is likely to happen or is the time scale invloved enough for the OR to wag his finger at me and let it go? obviously i dont want the former partner to be left needing to find £4000 because of my bankruptcy.

any advice greatfully recieved.

PS. the money was for a car loan, and the lump sum was from selling that car and a few personal items.
By Mel_Odious
#7563 Nobody can tell you for sure exactly how any OR will view the situation, from my experience of hearing about many OR interviews over the years, they all do their own thing and act independantly. I'm sure though that if you explain it as it is, s/he will be understanding of the situation.
I wish you luck and trust you will let us know how it went.
Mel
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By Nicky
#7568 As Mel said, its up to the discretion of the OR at the end of the day. It just might seem too much like hard work to go through court proceedings considering it was last year.

If is was something that was done a month or so ago and then you decided to go bankrupt, their attitude might be a little different.

The main thing is that your as honest as possible, then there are no skeletons in the cupboard and no surprises.
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By JaneClack
#7579 ... and you had no choice. The bank exercised its rule of offset!