UK bankruptcy and small inheritance.

[Nobizere]

I have debts of over €750K and am considering UK bankruptcy. These debts are business debts, as I ran a business under my own name, and 2 mortgages which are both underwater. I've done some research and am willing to ship the whole family to Britain and start again. I'm 50 years old, and my three kids are under 10 so this isn't something I've considered lightly, as employment prospects obviously won't be as good as they would be for someone half my age.

My father recently died and I will soon come into an inheritance of about €25K and was curious to see if anyone knows how this will be handled. Obviously I would like to hold onto this money as a safety net in case employment is difficult to find. Some of this money will be used to pay for the bankruptcy.

Can somebody tell me how this money is considered with regard to bankruptcy.

 

[Bronte]

It will be treated as an asset like any other. And you will lose any of it you've not spent before the bankruptcy.

 

[Cantalia]

Give it to your wife before you start bankruptcy, no tax implications.

 

[Jim2007]

Give it to your wife before you start bankruptcy, no tax implications.

<sarcasm on>
Sure because it will never enter the head of the person appointed to over see the insolvency that people get up such crafty moves...
</sarcasm off>

 

[Dr.Debt]

Jim is absolutely right. This is exactly what the Official Assignee would be looking out for in a bankruptcy

 

[munchy]

With a large family like your own you are entitled to a use a chunk of money to set yourself up in the UK - get a family car, furniture, clothing, new home etc.

 

[Steve Thatcher]

With a large family like your own you are entitled to a use a chunk of money to set yourself up in the UK - get a family car, furniture, clothing, new home etc.

By all means use the money to start a new life in the UK. Take a lease for 12 months, get a vehicle but only up to the value of £2000.

You will be under no pressure to file for bankruptcy immediately and so you will have time enough to ensure that there will be little left in any savings account. I can explain how this can be done and why it is necessary.

Steve Thatcher
www.helpwithdebtuk.com

 

[Nobizere]

Thanks to all for taking the time to reply.