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karis
Starting Member
30 Posts |
 Posted - 25 September 2008 : 17:51:40
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Hi, I am currently facing the prospect of bankruptcy  . Not so long ago I withdrew funds from our joint mortgage account to repay my mother who has been enormously helpful to me over the past couple of years when I have been unable to pay the bills. The money went into my husband's bank account before being given to my mother. Is this likely to get me or my husband into trouble with the OR if I go ahead with the bankruptcy? What if I just said it was for home improvements, would they be able to find out? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 25 September 2008 : 18:31:04
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Hi Karis,
There are two issues here:
Firstly, the OR would be able to claw this money back to distribute pro-rata to your creditors as this will be deemed as a preferrential payment.
Secondly, a lie of omission is still a lie. As you have to swear an affadavit when you present your bankruptcy petition to the court, any lies you have told will be deemed as perjury which is a criminal offence.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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John
New Member
United Kingdom
73 Posts |
Posted - 25 September 2008 : 20:25:24
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Hi karis
when you say "I withdrew funds" what exactly does that mean?
It's a joint mortgage account but the funds went into your husband's personal account. Assuming he is not going BR, who actually made the withdrawal, who signed for the funds, if anyone?
And what was the balance of the account at the time?
What I'm trying to say is I would have thought a withdrawal from a joint account secured against a property requires both signatures. Also, if you left an available sum in the account equal to that which you withdrew then it could be argued that the money you withdrew was your husband's share.
If you could answer these points it would help to determine if you have indeed made a preferential payment.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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karis
Starting Member
30 Posts |
Posted - 26 September 2008 : 10:32:57
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Thanks Julian and John.
We have a mortgage account with a cheque book which requires both our signatures. I could say it was from my husbands share of the equity in the house but it would be very unfair on him to do so, he is likely to lose his home through no fault of his own, and there is no way I would want my mother questioned about this issue as she has been brilliant in helping both of us when we needed it. If I did say that the money was spent on the house would I have to provide receipts to prove this? The cheque was for 9K so I suppose you could expect me have some kind of proof of where the money went, but what would they do if I didn't? |
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 26 September 2008 : 11:33:36
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Hi Karis,
To my mind, £9k for "home improvements" sounds reasonable. I have not known an OR insist on receipts/invoices for this kind of amount.
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk
Don't forget the helpline on 0800 078 9367 |
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karis
Starting Member
30 Posts |
Posted - 26 September 2008 : 12:12:28
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Thanks Julian,
I have a reasonably well-paid job so I know I will have to pay quite a lot of the debt back one way or another, but I don't want people close to me to suffer because of my mistakes. |
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John
New Member
United Kingdom
73 Posts |
Posted - 26 September 2008 : 12:18:56
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Hi
why would it be unfair for your husband to accept that it came from his share of the account?
If you require joint signatures he knows and authorised the withdrawal, it went into his account and he paid Mum. He's done nothing wrong there.
What it will do is reduce the possibility of your acquiring a BRU/BRO.
www.Bankruptcyhelp.org.uk
0800 078 9367 |
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karis
Starting Member
30 Posts |
Posted - 26 September 2008 : 17:16:20
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| It wouldn't be fair because if we were forced into selling the house then he would end up with virtually nothing! Personally I'm hoping that house prices will keep falling and there will be so little equity in the house that the OR will not force us to sell it. He's self-employed and would find it impossible to get a mortgage on his own without a substantial deposit. |
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Will the OR check our mortgage account?
