| T O P I C R E V I E W |
| Mr_Bankrupt |
Posted - 30 September 2009 : 20:23:01
I have very recently been declared Bankrupt and can't help that i have been somewhat foolish! I had nearly £30k of personal debt and also my own limited company which naturally will cease trading. This is no hardship as it was losing money. I had about £7k left in the business which i withdrew in cash before i declared myself bankrupt. This is showing on my bank statements and i will need to explain this next week!!! I did not declare that i had this money during my bankruptcy but was hoping to say that i had to repay it to the person who funded my business when i started it in Dec 2007 or that i was keeping it to live on when my temporary employment contract ends in Nov 2009. That said i am not sure how this will go down with the OR and it is fair to say that I am now panicking! My business was funded by a family member from whom i borrowed £15k. At present i have not paid anything back and fortunately there is no real pressure to do so!! This was done without any form of agreement! Is there an agreement that i could draw up, ie an Investment Agreement which could demonstrate that this money was never mine so the OR could not stake a claim on it...!!?? This money owed was not detailed on my Creditors list!!
I separated from my wife in March this year and basically have nothing, no house, no car, no possessions etc...!! Surely to hold onto £7k is not to much to ask for 16 and a half years of marriage!! Like i said, in 2 months time i will find myself out of work again but apparently the OR won't take this into consideration until it actually happens, great!!!
Please Help me with some sound advice as i am still having sleepless nights and don't know what to do for the best...!! I do not want to soubd deceitful but would like to keep this cash for obvious reasons already mentioned!
Many thanks in advance. |
| 7 L A T E S T R E P L I E S (Newest First) |
| Reviva UK |
Posted - 02 October 2009 : 08:28:58
Hi
you need to get specific advice before you get deeper into trouble.
the money still belongs to the Ltd company.
however obce you have deposited it into your personal bank account then the Ltd company has loaned you the money and they become the creditor.
The Ltd company bank account did not need to be listed on the forms because it is not your bank account - it is the Ltd Company bank account.
The money has clearly been loaned to you by the Ltd company, now shows up on your personal bank account which you have withdrawn and paid creditors with.
The money has definately all gone and needs to be given to the OR,
Then you need to explain the the OR that you got confused between the Ltd company and yourself.
Also as you are now Br you cannot act as a director so can no longer make decisions for the company.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Mr_Bankrupt |
Posted - 01 October 2009 : 23:06:09
Paul
Thanks again for your response.
The problem i have with paying the money back into the business account is that the OR has asked for the Cheque Book and cards for all of my accounts listed, of which one of them was the business account! If this money gets paid in, how on earth could i get it back out to pay the creditor?
Does it also matter that i do not have a formal lon agreement for the funding?
Another problem i have is that this cash (plus some additonal money which i used to pay some local debts off, which i also fear i may also get into trouble for now) was transferred into my personal bank account from my business account, from which i withdrew it. I did this because my business bank account was with the same bank to whom i had personal debts and i was advised (albeit wrongly i think) to move it to stop the bank taking money from the business account to pay my individual debts.
Also, will the OR choose to or have the rights to dive into my business affairs and accounts etc even though this is a "personal" bankruptcy....??
This is a nightmare and i really do not know which way to turn now!! |
| Reviva UK |
Posted - 01 October 2009 : 00:29:12
I expect that the official Receiver will not be interested in the Limited company as it is an entity in its own right. More often now the OR expects you to sort this out rathen than them as they are dealing with your individual bankruptcy.
If the money was loaned to you then your friend needs to be listed as a creditor and if you chose not to declare the monies then this is a major problem as you have committed perjury by swearing on oath that the info is correct. This is not the best plan.
If the money was loaned to the limited company then it is not yours and needs to be returned to the Ltd company. The company should seek to close itself down ( liquidation, winding up petition or by striking off )
as there may be only one creditor - your friend - then they would be in receipt of the available funds and then the companhy could simply be struck off.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Mr_Bankrupt |
Posted - 30 September 2009 : 21:42:37
Paul
Good Question and one i cannot really define as there was no official agreement in place as it was a family member basically trying to help me out in a bid to turn my fortunes around, but unfortunately one that didn't work! What i can tell you is, that although i owe them this money, they had no real desire to be listed as a Creditor in my bankruptcy because of the looseness of our agreement, or lack of "official" agreement which may come into question! Ideally i would like to keep this money somehow for previous reasons stated, ie pending job loss etc but if i have to hand it over then i guess i will do so. Trouble is, i will look such a plonker having not been totally honest in the beginning! Have you any good ideas on how i could realistically keep this money or redeem myself (come clean) without looking such a pratt..!!??
|
| Reviva UK |
Posted - 30 September 2009 : 21:32:54
Did the backer give you the money ( and is therefore your creditor in bankruptcy ) or did he give it to the Ltd company.
Subtle but critical difference.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
| Mr_Bankrupt |
Posted - 30 September 2009 : 21:24:59
Hi Paul
Thanks for your response.
The money was that of a Limited Company of which i was the sole director. I was advised by my accountant to let the OR close my company / stop me being a Director as the only Creditor was myself, albeit that i was backed financially by somebody else! |
| Reviva UK |
Posted - 30 September 2009 : 21:15:56
Hi
you need to get VERY SPECIFIC and correct advice. You are potentially starting down the road of fraud and that is a criminal act.
If the money belongs to the Ltd company then it is not yours and needs to be repaid to the Ltd company.
The Limited company then needs to review its position about how to cease trading and conclude its business with its creditors so that everything is done properly and legally.
Paul Johns
Bankruptcy Specialists
Reviva UK
www.revivauk.com
Real People ..... Real Debt Solutions |
