Hello, A statutory demand has been served against me and my partner - which we do not intend to contest. However, we recently have had a water leak in our home - and a substantial amount of contents have been damaged. The insurance company has said they would rather settle the damaged contents in money rather than replace the goods. Is this money safe as it is to replace our lost clothing/furniture or will the Official Receiver be able to take it? The water leak and insurance claim started before the Statutory Demand was issued - however the claim is likely to pay out after a bankruptcy hearing is issued against us.
Hello and thanks for requesting me
Are you likley to be paid after or before the time for a bankruptcy petition is served please?
Hello, the insurance for damage contents/personal possessions is likely to be paid out after the bankruptcy petition is heard in court.
Sadly therefore it would go to the OR
It forms part of your estate
If you can drag it out beyond that you would do well
But sadly if you are paid after you are made bankrupt, any monies to go the OR
I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest
Can I clarify anything for you about this today please?
To clarify one point, if the money was paid out after a statutory demand is issued but before a bankruptcy petition is heard, is that legal to spend the money back on replacement possessions?
But as soon as the bankruptcy petition is granted - its all to the OR
Does that clarify for you?
Yes, thank you.