cashing investments before bankruptcy...bad idea?

[Skypist]

I need to make a quick decision about this one guys.

 

Basically, I was about to file for bankruptcy as it seems the best option for my situation (renting, safe bank account with under £1000 in, total bank account/card debts of £20K, self-employed but minimal trade until I change career). I had considered an IVA through Payplan but would have ended up paying back 40% or so of the total while I still receive some benefits such as HB, TC and CTC.

 

So, everything was set, I have basic stock left which wouldn't be easy for an OR to sell off...but then I realised that my mother had made around 5 investments for me when I was young, from which the interest was going into her bank account monthly. These investments do total £20K, and thought it best that she close them in case the OR discovers them and puts the blame on me. However, cheques came in my name.

 

What do I do? As the interest was passing to her did they legally become her money? My accounts do actually show I owe her several thousand from loans, but cashing them in then transferring to her looks pretty sneaky no matter what reason.

 

What's the best option for me now, scrap bankruptcy?

 

All replies and opinions on this are hugely important to me right now.

[Wintry]

Hi

 

Just going on the limited info you have provided

 

You would have to be honest with the O/R if you decide on bankruptcy, they will look into issues such as this.

 

Maybe have a look through the I/S Tech Manual A To Z guide & other links, you might find some answers in there or ring their helpline maybe

 

http://www.insolvencydirect.bis.gov.uk/TechnicalManual/TM%20Index/Index%20Home.htm#$34859

 

http://www.insolvencydirect.bis.gov.uk/TechnicalManual/Ch25-36/Chapter31/part5/part5/part_5.htm

 

 

Also link here to example B/R forms - there is a section that asks about assets (SECTION 3)

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcy628.asp?pNo=7

 

http://mymoney.nedcab.org.uk/moneyadvice/bankruptcy628.asp

 

 

As always get full advice before deciding on anything (links below that might help)

 

https://www.mymoneysteps.org/

 

http://mymoney.nedcab.org.uk/moneyadvice/index.asp

 

http://www.bis.gov.uk/insolvency

 

Your decisions at the end of the day

 

Hope this helps

Edited September 26, 2013 by Wintry