Author Topic: arrested funds  (Read 10856 times)

flippermaj

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arrested funds
« on: Jan 20, 2017, 03:30:58 PM »
Hi there,


I owe a firm several thousand pounds and they have finally arrested the funds from one of my customers who was about to make a large payment to me.  The customer has to hold the funds for 14 weeks before paying them over to my creditor. 


If I declare myself bankrupt before the 14 week period is up will the arrested funds held by my customer still belong to my creditor or will they be seized by my bankruptcy trustee\administrator leaving my creditor with nothing?  I am in Scotland in case that makes any difference legally!


Cheers

Lisa Thomas

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Re: arrested funds
« Reply #1 on: Jan 23, 2017, 09:29:27 AM »
I presume you mean the customer is your debtor?


If you go bankrupt the Trustee will be entitled to collect this as it will be an asset of your Bankruptcy estate.


You also need to consider all the other ramifications of Bankruptcy carefully and ensure it is the right decision for you.


Eg if you own your own home it will be at risk of being repossessed and sold in Bankruptcy as will other assets. 


Your credit rating will be ruined for 6 years (if not already)


You can't be a Director whilst you are Bankrupt.  ANy windfalls received whilst you are Bankrupt wil vest in the BKY estate. 


You might have to pay some of your income into the estate for 3 years.
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