• I'm happy to introduce the Styleforum Happy Hour, our brand new podcast featuring lively discussion about menswear and the fashion industry. In the inaugural edition, a discussion of what's going on in retail today. Please check it out on the Journal. All episodes will be also be available soon on your favorite podcast platform.

  • Styleforum Gives - Holiday Charity Auction 7: Castangia from SARTORIALE

    We are very proud to present this year's edition of the Styleforum Holiday Charity Auctions, this year in support of the Ronald McDonald House Charities of Spokane (www.rmhcspokane.org). Each Auction lasts 24 hours. Please follow and bid on all the auctions.

    The 6th auction is for a Castangia Suit or Sportcoat from SARTORIALE Please bid often and generously here

    Fok and the Styleforum Team.

  • STYLE. COMMUNITY. GREAT CLOTHING.

    Bored of counting likes on social networks? At Styleforum, you’ll find rousing discussions that go beyond strings of emojis.

    Click Here to join Styleforum's thousands of style enthusiasts today!

Looking for a bit of advice on bankruptcy..

benecios

Distinguished Member
Joined
Mar 13, 2006
Messages
1,013
Reaction score
1
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.
 

odoreater

Distinguished Member
Joined
Mar 2, 2005
Messages
8,739
Reaction score
43
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.
 

Violinist

Distinguished Member
Joined
May 12, 2006
Messages
1,907
Reaction score
0
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?
 

benecios

Distinguished Member
Joined
Mar 13, 2006
Messages
1,013
Reaction score
1
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.
 

benecios

Distinguished Member
Joined
Mar 13, 2006
Messages
1,013
Reaction score
1
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.
 

Styleforum is proudly sponsored by

Featured Sponsor

How many pairs of shoes do you own?

  • 1 - 4

    Votes: 29 3.6%
  • 5 - 10

    Votes: 141 17.4%
  • 11 - 20

    Votes: 265 32.7%
  • 21 - 30

    Votes: 129 15.9%
  • 31 - 40

    Votes: 70 8.6%
  • 41 - 50

    Votes: 48 5.9%
  • 51 - 60

    Votes: 24 3.0%
  • 61 - 70

    Votes: 22 2.7%
  • 71 - 80

    Votes: 17 2.1%
  • 81 - 90

    Votes: 7 0.9%
  • 91 - 100

    Votes: 8 1.0%
  • 100+

    Votes: 51 6.3%

Related Threads

Forum statistics

Threads
428,985
Messages
9,226,768
Members
193,678
Latest member
AlexBad
Top