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

Moderators: TalbotWoods, JaneClack

By Brian
#3336 My situation is fairly drastic and need some practical advice.

Currently have CC, O/Draft and Personal Loan (All unsecured) totalling 70K. This has amassed primarily through debt consolidation over the years, increase in family, and share dealing. At a particularly difficult time during the last few years, a family member stumped up some cash for me to meet some trading positions in my shares. Hoping that in time the situation would improve I would be able to repay both them and my creditors. Unfortunately this hasn't occurred. I can no longer meet payments in full to my creditors. If I sell the balance of my shares, then I will still owe the family member the balance plus all of my other creditors in full.
If I sold the shares and reimbursed him as much as I receive, even though it wouldn't be the full balance, and then declared B, would the OR have the right to reclaim the monies paid back, even if he was listed as a creditor in the bankruptcy process. I don't think it counts as a preference as he is not gaining from any dealings I have made.
The only other assets I have are a car worth approx £5000.00. Would this have to be sold as I would still need a car as we live in a rural area with an extremely poor public transport system.

My Job dictates that I don't really want to pursue the Big B, would probably be happier with an IVA or DMP. DMP unfortunately would take close to 20 years to repay on my disposable income.

Thanks
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By JaneClack
#3384 Have only just noticed this post so apologise for the delay in any reply.

Unfortunately if you were to pay the family member back you would be showing a preference and as such the Official Receiver could overturn the transaction. I understand how you feel morally about this as it is a member of the family but it would be better to include this - what you do when you are discharged from bankruptcy is up to you.

The car itself is of quite a high value and the OR might well want it sold and give you some money back to purchase a cheaper car as you would need it for work. However, he may also allow you to pay a sum in order to retain it - this would obviously have to come from another family member.

An IVA may be a sensible option for you but you would need a lump sum or surplus income to service it for 5 years. Contact NDL or FCL/Payplan who would be able to give you free advice on this.