Windfall in bankruptcy

[cashdesk]

Hi,

 

I went bankrupt in December last year and during the next few months I was alone in the house, so used very little electricity or gas. We got our bill earlier this week saying that they owed us £490. The next day a letter said that our direct debit payments would be going down to £50 (from £99) a month because based on last year’s usage they expect my bill for the next 12 months to be around £600. I don’t think this will be the case as I will have the wife and two kids here this year, and the heating will be on almost constantly during the winter. I am going to ask them to put the direct debit payment back up to £99 per month because of this.

 

Then today I checked my bank and the £490 the Gas company owed me has been paid into my account.

 

Do I need to declare this £490? If I use it to repair my car would this be seen as reasonable?

[loobyloo85]

If you are still in bankruptcy, the best thing to do would be to inform the official receiver of any monies you receive, just to be on the safe side, and prevent any unnecessary bother. Just explain to the OR that you have car repairs to do, and they may be understanding and let you keep all or most of this money aside for that. Best to be honest and upfront about any lump sums received x

[Leakie]

Hi Cashdesk

 

I agree with Loobyloo 85

to be on the safe side speak to the OR

If you used and the OR found out it could end up with you having a BRU/BRO

 

Hope this helps

 

Leakie

[cashdesk]

Thanks for the advice. I contacted the OR last week and told them.

[firefox123]

hi, can i ask what a BRU/BRO is

[debtinfo]

a BRO/U is extra restrictions that can be placed on a bankrupt for up to 15 years

[Bandit127]

Bankruptcy Restriction Undertaking (voluntary) or Order (by order of a court).

 

Usually an extension of 12 months to the bankruptcy period and a matter of public (and permanent) record.

 

I have not seen it affect the period of an IPA/IPO (Income Payments Agreement/Order). These are for 3 years.

 

Usually these are used for people that heavily abuse the system (take a loan for £25k and spend the money in the full knowledge that they were insolvent shortly before going BR for example).

[debtinfo]

It should also be noted that a BRO/BRU is simply the first in the line of penalties that can be imposed, for very serious bad behaviour criminal proceedings can be brought as well which is punishable by fines and imprisonment

[Bandit127]

It should also be noted that a BRO/BRU is simply the first in the line of penalties that can be imposed, for very serious bad behaviour criminal proceedings can be brought as well which is punishable by fines and imprisonment

Whoa! Steady on - the OP had a windfall of £500 - or a change in I&E of £50 a month... On the radar yes, but please don't give them nightmares...

[debtinfo]

not trying to give them nightmares, just the other poster Firefox asked what they were and it is necessary in explaining what they are to put them in context with the range of outcomes as we dont know what firefox is asking in relation to.

 

just to be clear £500 would never end up in a criminal prosecution as it is below the threshold to submit a case