Hi i Have a Bankrupty question:-

Bankrupcy covers the debts you mention, the latest loan would only be iffy if he took the money with a view to hiding it and then going bankrupt

Hi , just reading the post , how could they prove the loan was taken to hide it?

espescially if the loan was a spend on what you like type loan?

In message , Take a Walk writes

What do you mean by that? ALL debts must be declared in bankruptcy.

In message , T - I - A writes

That seems to be a GOOD financial position if you ask me...........

Everything.

Yes.

Is he managing to keep up the payments? Hes only going to go bankrupt if he defaults.

I mean if he knew he intended to go bankrupt, then borrowed that particular loan to either blow on wine and wimmin, or to hide away under the bed , then there would be a possible criminal case to be pursued against him.

Also, all debts need not be declared - if you intend to settle an overdraft on a bank account (so you can keep the account open) it does not need to be included in the bankrupcy.

And not all debts are covered - child maintenance and council tax are not included for instance.

You are saying that someone can make a payment to their bank to clear an overdraft even after they declare themselves bankrupt?

Why are they allowed to pay one creditor and not others?

Thats doesnt alter his bankruptcy though.

When did this concession arise? Have I missed something? ALL debts need to be declared in a bankruptcy.

Eh? Yes they are, but they may have some priority over other creditors.

I think it is more correct to say that personal bankrupcy does not clear out child maintenance *arrears*. AFAIK!

Obviously if one's income is low (as a result of the circumstances which gave rise to the bankrupcy) then any child maintenance assessment will also be low, or nil.

But this would amount to preference, which does not apply to overdrafts (unlike Vat etc)?

No. You must not give preference to certain creditors. That will get you into trouble.

Wasn't a problem with my bankrupcy, my receiver even suggested it. Any debt that you don't declare (through choice or you forget to list) must be settled privately later in full regardless of any payments you must make to the receiver towards your debts. The other way to look at it is if you have four creditors and owe each £25 and have assets of £10, four creditors will get £2.50 each and may each get more money out of your earnings (1/4 of available funds) in the next three years. If you don't include one during the bankrupcy, the other three creditors get £3.33 each and a third of future earnings - the fourth creditor will have to be paid separately his full whack out of what the receiver lets you live on after your bankrupcy.

Anyway, more to the point if you go bankrupt for say £150,000 like me, then a £250 overdraft is such a drop in the ocean, other creditors and the OR really don't care. And you are hardly going to NOT include a £30,000 overdraft for the sake of keeping a bank account.

Paying a family member £50,000 in preference to the vatman in of course not going to go down well, but that was not my point.

The point is that you are not allowed to give preference to certain creditors. I'm not saying people don't do it but it is illegal and should not be advised as if it is a matter of choice and not illegal.

Exactly, it's now having more debts than assets that makes you bancrupt, it's being unable to pay your debts _as they fall due_.

In message , Robert Laws writes

No, thats insolvency.

If you are bankrupt, then your total assets are less than your liabilities, but it may be that failing to make a payment when due triggers the bankruptcy.