or Connect
Styleforum › Forums › General › General Chat › Looking for a bit of advice on bankruptcy..
New Posts  All Forums:Forum Nav:

Looking for a bit of advice on bankruptcy..

post #1 of 5
Thread Starter 
A friend made himself bankrupt last week,before doing so he withdrew the entire balance of his bank account(which was a paltry £12000).He made this withdrawal approx 3 months ago.My question is when he speaks to the official receiver and he asks him where it went and he says I spent it on various things,will he accept that or will he have to account for every penny with receipts etc....I live in England so I would need advice regarding English law.
post #2 of 5
I know nothing about English bankruptcy law, but under American bankruptcy law (which, presumably was influenced by English bankruptcy law), your friend's withdrawal of all the funds in his bank account could be considered a fraudulent transfer if he didn't receive reasonably equivalent value in exchange for them. If a creditor objects to the transfer you will probably have to account for every penny (roughly) spent in order to determine whether reasonably equivalent value was received in exchange for the transferred funds. Again, English law might be totally different, but this is a starting point.
post #3 of 5
Quote:
Originally Posted by benecios
A friend made myself bankrupt last week,before doing so he withdrew the entire balance of his bank account(which was a paltry £12000).He made this withdrawal approx 3 months ago.My question is when he speaks to the official receiver and he asks him where it went and he says I spent it on various things,will he accept that or will he have to account for every penny with receipts etc....I live in England so I would need advice regarding English law.

Is he one of your soccer pals?
post #4 of 5
Thread Starter 
Quote:
Originally Posted by Violinist
Is he one of your soccer pals?

Yes he is actually.Will that influence the advice you are about to give? Maybe you are going to enlighten me,I am no expert but I didnt think playing soccer part time had any bearing on a case like this.
post #5 of 5
Thread Starter 
Quote:
Originally Posted by odoreater
I know nothing about English bankruptcy law, but under American bankruptcy law (which, presumably was influenced by English bankruptcy law), your friend's withdrawal of all the funds in his bank account could be considered a fraudulent transfer if he didn't receive reasonably equivalent value in exchange for them. If a creditor objects to the transfer you will probably have to account for every penny (roughly) spent in order to determine whether reasonably equivalent value was received in exchange for the transferred funds. Again, English law might be totally different, but this is a starting point.

Cheers,I will pass it on,it should be helpful.
New Posts  All Forums:Forum Nav:
  Return Home
  Back to Forum: General Chat
Styleforum › Forums › General › General Chat › Looking for a bit of advice on bankruptcy..