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| kev.cy |
Posted - 01 October 2009 : 21:54:54
Hi all,
I'm considering bankruptcy as a solution to my debt problems, however I want, as far as possible, to make sure there is no backwash for anyone financially associated with me.
In particular, about 3 years ago, I convinced my family to loan me some money (5-figure sum). I used the money to improve my financial position (i.e. cleared some credit cards). I then applied (& was accepted) for a secured loan to consolidate the remainder of my debts. I then borrowed back the original sum from my credit cards to repay my family.
I have maintained payments to my creditors throughout the intervening 3 years, however my position has recently worsened such that I am looking at bankruptcy.
Given that I am looking to write off my unsecured debts (including monies borrowed to repay my family), how likely is it that the OR will chase my family for the money?
Any help/ views gratefully appreciated.
K |
| 7 L A T E S T R E P L I E S (Newest First) |
| RHB |
Posted - 02 October 2009 : 15:59:27
Possibly as it could be seen as you favouring your parents. |
| kev.cy |
Posted - 02 October 2009 : 07:31:34
Hi RHB,
yes - I borrowed money from my family to clear the cards, and then (3 - 4 months later) I borrowed the same amount back from the cards to repay my family. So, effectively, my family's money provided a temporary respite from an existing debt.
Do you think my bankruptcy might cause problems for my family?
Thanks in advance,
K
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| RHB |
Posted - 02 October 2009 : 07:23:20
But you borrowed the money from crdit cards to pay them back? |
| kev.cy |
Posted - 01 October 2009 : 22:55:38
Phew! Huge relief :)
Looks like it's a green light for bankruptcy!
Thanks again for your help.
Cheers,
K
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| debtinfo |
Posted - 01 October 2009 : 22:51:50
good news then,one think that you could point out is that the loan was only as a short term thing and so was bridging the gap to sort your other debts out, but you will not need to say this because preference payments to family members can only be recovered if they happened in the 2 years before the bankruptcy |
| kev.cy |
Posted - 01 October 2009 : 22:28:37
Hi,
thanks for responding.
I borrowed the money from my folks back in July/August 2006, and repaid them in November 2006 (less than 6 months), and yes I could genuinely afford the repayments without using credit. My position has worsened as a result of redundancy.
My family were not party to any details of the resulting transactions, and so are genuinely innocent bystanders. It would be tragic if they were to find themselves in-court/bankrupt despite having done nothing wrong!
Thanks in advance,
K
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| debtinfo |
Posted - 01 October 2009 : 22:13:11
hi, tough question to answer exactly, how long ago did you repay the family members, when you did could you genuinely afford all of your other repayments from your income without using any credit, what has caused your financial position to worsen |
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