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

Moderators: TalbotWoods, JaneClack

By neverbeenknown
#219144 Hi

Is it best to add or leave out money owed to my parents in the Unsecured creditors section when filling out the statement of affairs! I owe them £6500, and will pay them back over time, so is it of benefit to leave out what I owe my parents?

Thanks

Matt
By cyberelf
#219147 I would just include it, it cant do any harm... its your decision what you do after your BR is ended. And they will get letters from the OR as creditors in the BR informing them of whats going on...which may be of interest to yourself... :?
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By JaneClack
#219156 Legally you should include ALL your creditors and ALL your creditors would then have the debt written off.

What you choose to do with your money after bankruptcy is your decision but you cannot pay back your creditors....

I personally think people omit their parents for that exact reason - their "moral" obligation to pay back people they know makes it very difficult for them.

However the law says different!
By johnny 73
#219169 if the OR finds out that you have omitted a debt it wont look good for you. you should include it

i know of a case where the OR found out from supplied bank statements that the BR had paid some money to her family who she owed money to and not disclosed on the forms. the OR contacted the family, who it then viewed as a preferably treated creditor and requested the money they had received be paid back to the OR. this caused a lot of family grief

be honest about your situation with the OR