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T O P I C R E V I E W
p100
Posted - 19 March 2009 : 15:31:58 what happens to any money in my bank account? what happens if i give it to a family member as part of an owed debt?
3 L A T E S T R E P L I E S (Newest First)
John
Posted - 19 March 2009 : 16:07:46 Hi
thanks Melanie I had completely neglected to answer that part of p100's post.
John White England Jackman & Spacey
Melanie.n
Posted - 19 March 2009 : 15:54:13 May i presume you are about to file for bankruptcy - if so it would be wrong of you to repay a family member as this is classed as 'preference' in that you are preferrrng one debt over another. If the money is from your salary you will be able to retain it to meet your day to day commitments - if it is an amount over and above your salary ie savings the OR will sieze it as an 'asset'.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
John
Posted - 19 March 2009 : 15:53:06 Hi
your account would be frozen and the money made unavailable. If that money is purely for essential bills etc then the account can be unfrozen by the bank so that you can access access the funds once the OR has authorised the bank to do so. At which point the account itself will probably be closed by the bank.
If the funds are intended for essential costs you could always remove them before you petition the court.
Your bank statement will show you have done this but there will be no problem if you explain to the OR why you did so.
