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kev.cy
Starting Member
23 Posts |
 Posted - 26 September 2009 : 09:43:56
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Hi all,
I am considering bankruptcy as a solution to my debt problem, however I am concerned about possible repercussions of having an official receiver looking into my affairs. In particular, about 3 years ago, I borrowed money from credit cards and took it out of the country; most of the money (about 80%) was subsequently returned and repaid. I don't think I've done anything illegal, but am naturally a little nervous and want to quantify any risk.
Can you help?
Thanks in advance,
K |
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debtinfo
forum expert
2826 Posts |
Posted - 26 September 2009 : 10:59:27
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Hi, you wont get in trouble specifically for taking money out of the country, its all to do with if you could afford to repay the amount borrowed. Also things that happen very close to the bankruptcy are dealt with more severly than those that happen years before.
Its hard to give an answr without knowing all the facts |
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kev.cy
Starting Member
23 Posts |
Posted - 26 September 2009 : 17:35:55
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Thanks for your response.
The money was used for property speculation (I had calculated that the rental income from said property would cover repayment of debt & interest); unfortunately (as often seems to be the case), once I'd parted with the cash, the deal went sour ... the people I "bought" from decided not to leave, and I then spent the next 12 months (& around £5k in legal fees) getting them out, whereupon I sold the property to a neighbour for a loss. In total my losses (inc legal fees) come to around £15k.
Naturally the above looks highly reckless, and if the receiver probes into the matter (as he/she probably will) it's difficult to see how they would react. My bank account shows foreign transfers and payments to lawyers, so it's hoping for too much that it wouldn't get noticed.
What I really want to know is what might be the worst-case outcome for me; i.e. no good to declare bankruptcy to escape debt, only to find myself with a fraud conviction & prison sentence (although I may be disasterising here). Is it the case that affairs older than 5 years aren't looked into?
Be grateful for any for any feedback.
Thanks,
Kev.
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debtinfo
forum expert
2826 Posts |
Posted - 26 September 2009 : 18:42:21
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What you have said does not seem wrong at all, many people borrow money in order to create property portfolio's especially as at time the property prices were increasing. Im sure that the OR will notice and if not it is something that you tell them about otherwise you will have a gaping hole in your financial history.
I presume that when you borrowed the money you gave the correct information that they asked for |
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kev.cy
Starting Member
23 Posts |
Posted - 26 September 2009 : 18:46:48
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They didn't ask for any information at all, as I simply borrowed the money from existing lines of credit (i.e. credit cards!).
All a bit hairy, however I thought I'd tidied matters up fairly well ... didn't expect to find myself staring at bankruptcy 3 years hence!
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debtinfo
forum expert
2826 Posts |
Posted - 26 September 2009 : 20:18:59
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| then if you were pre approved for the credit and were buying into a growing housing market i don't think you have anything to fear |
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kev.cy
Starting Member
23 Posts |
Posted - 26 September 2009 : 20:35:26
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Thanks very much for taking the trouble ... you've made my mind easier!
Cheers,
Kev
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Hi all,I am considering bankruptcy
