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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3496
Experience:  Solicitors 2 years plus PQE
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This is about debt repayments and avoiding making a fraudulent

Customer Question

This is about debt repayments and avoiding making a fraudulent misrepresentation. I am self-employed, earning less than my outgoings, and paying off around £17k across two lenders at £1 per month. I am in a private rented flat. Also expecting surgery which will stop my earnings for at least two months.
Problem: I can only get with a pension drawdown, I have taken one earlier this year and I must make a financial statement. I am afraid of committing fraud if I don't declare it or being exposed to losing it all in repayment then being without means to pay rent when I go into hospital. Can I lawfully show it as income, spread over months, or just not declare it and give a statement based on months after I received it?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
What type of debt restructuring agreement did you come to with the lender? Did it contain any disclosure obligations? Are you likely to be made bankrupt when the surgery occurs?
I would fraudulent trading only applies to companies not to personal estates.
I look forward to hearing from you.
Kind regards
AJ
Customer: replied 1 year ago.
The debt is split between two collection agencies. As my income has barely covered expenses they have each agreed to a temporary arrangement of £1 per month ( for a couple of years now)
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Did they ask you to sign any thing that said you had to disclose changes to your financial affairs?
Kind regards
AJ
Customer: replied 1 year ago.
I am not aware of explicit disclosure obligations beyond 'This is an accurate record of my financial position' .I'm pretty sure I did have to sign a statement such as you describe but need to go next door to check
Customer: replied 1 year ago.
I found no documents. Agreements were made by phone and I occasionally provided an income statement based on a few preceding months salary or same season last year's fuel bills
Customer: replied 1 year ago.
Until you replied I was preparing a statement itemising a monthly 1/12 of the drawdown as 'pension', (after deducting tax due and a personal loan repaid to individual)
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Was the pension ever discussed as a way of repaying the loan? To be honest with you, you should not conceal it from them willfully, but if they do not ask and you do not have an obligations to disclose it then I would volunteer the information. Ultimately this is only likely to be a problem if you go bankrupt. Is there anyway they can find out? Does the agreement a review period?
Customer: replied 1 year ago.
The pension was never discussed. It only became an issue for me with the budget changes. Did you say would volunteer or would not volunteer? My current income barely covers rent and council tax so I have to show I have something to live on.I could pad the number for 'salary' but that feels dishonest
Customer: replied 1 year ago.
the next financial statement is due now
Expert:  Alex J. replied 1 year ago.
Hi,
Thank you.
Do not do anything deliberately misleading, because that is dishonest.
I would only answer the question if you are a) asked it or b) contractually obliged to do so. I would not otherwise volunteer what you do not have to.
Are you in some form of IVA?
Kind regards
AJ
Customer: replied 1 year ago.
No voluntary arrangement, the £1 a month was agreed verbally pro-tem when my income collapsed. I do need to answer questions about my income, completing a form with a section for wages/salary and pension. This renews the arrangement. i received a lump sum in april and am drawing on it , it's almost gone, i'll need to empty another pot to get through next year.
Customer: replied 1 year ago.
If I show the instalments I take from the drawdown as pension , I show enough to pay each creditor £30 a month but i'm worried that's the smell of blood to a shark.
Customer: replied 1 year ago.
Thanks for the discussion. It helpsBest regards
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. Do they know about your pension pots?
Customer: replied 1 year ago.
No,
Customer: replied 1 year ago.
I didnt consider them before budget. I've more or less spent my 25% on one and will have to cash in the whole of the other to pay for anticipated rent, tax, expenses, in new year after surgery. Also need a car, I work out of hours and this one is 18-y-o guaranteed MOT failure. Bankruptcy might be a problem as I work for solicitors in police stations. I'd lik to talk but would have to load cash on a prepaid card so not before tomorrow. How would I get back to you?
Customer: replied 1 year ago.
I'll click on the email link and try again tomorrow
Expert:  Alex J. replied 1 year ago.
Hi, Thank you. This link will remain open. Are they asking you now to disclose the pension pot?

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