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What Happens If I Spent My Compensation Money Before Going Bankrupt?

Question:

I had £11,000 compensation in may last year, but now the money has gone, and i have £3,800 of debt and was advised to go bankruped!! i only have £1,000 left to go bankruped with. will i be affected by the money i had and now haven’t got! can the court access this information, as it was personnal as i got assualted and no longer work.

Answer:

It is possible in bankruptcy they may inquire as to where the money went, but from the sound of it you just lived on it. If all the debts you have are £3800, you maybe able to avoid bankruptcy through a repayment scheme of making token payments for a period, if your situation may improve.

You could also look into an Administration Order or possible a Debt Relief Order for the debts.

Thank you for letting me help you.

Jon

If you have a bankruptcy question you’d like to ask, just ask using this online form. All help is free.

Source: What Happens If I Spent My Compensation Money Before Going Bankrupt?

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