Can I raise funds for a bankrupt friend?

Question

A dear friend of mine has, through various bad decisions and one freeloading partner, had to declare herself bankrupt. She has been offered a position in Japan, teaching English in a rural school. The problem is, she needs £3K to get there.

Obviously she cannot get a loan, as no bank would give her one. She's having a lot of trouble finding and keeping any cash. So could I set up a bank account to put the money into, and give it to her at the end of it, or would that break some law or code?

Answer 1

What you want to do is completely legal. After all it is your money and you can do what you like with it. Good luck with the fund raising and make sure your friend uses it for the right reasons.

Answer 2

Hi I'm no financial expert but I know what it's like to go bankrupt through no fault of your own. As others have pointed out its your money to do what you want with and I don't think its illegal to allow her to access it, i.e if you give her the debit card etc.. You obviously trust your friend and she's really lucky to have your support. Maybe you could get a solicitor to draw up some plans as a means of covering yourself if in doubt.

Answer 3

If your friend is an undischarged bankrupt, they should talk to the Insolvency Officer, and Citizens Advice Bureau. If you loaned her the money, she may have to declare it, being over £500. On the other hand, you could, I guess pay for her ticket and expenses, and leave it to them to pay you back once discharged.

Answer 4

Don't do it until her BK has been discharged. The funds could be taken as part of the BK proceedings if she has access to them. Once the BK is discharged it's perfectly legal. Just be aware of whatever Gift Tax laws may come into play and either work around them legally or make sure that any tax is properly paid.

Answer 5

You can do what you want with your own money. You can get a loan and give the money to her or you can save up for her. The only thing to be careful of is that you don't get a joint account with her or create any other official financial association, like putting her name on one of your credit cards as then her bankruptcy could hurt your credit score.
With regards to giving her money, you can do what you like.

Answer 6

Well there is no harm in helping a friend. Just because they are bankrupt it does not mean they can't borrow money off friends. Even Loan companies will help where they can.

Answer 7

nope you could even take out a loan yourself to sub her and let her pay you back as and when. You can tell the loan company the truth or say it is for a holiday. They won't care so long as you pay it back.

Answer 8

the legality of it works like this -

if you save the money, buy the ticket, give it to your friend - no problem

you save the money, give it to your friend - official receiver takes it off your friend.

you save money, your friend discusses it with OR who oks it as "needed" for employment, you give it to your friend - no problem.

either way your friend has to declare to OR what she is doing and the income from thejob could be used to offset some of the debts.

best scenario is friend discusses it with OR, but YOU buy anything that comes from YOUR money (ie the ticket) and give it to your friend to use.

Answer 9

i don't comprehend why human beings say social protection is going decrease than. Social protection which you pay now is going to the those that are on social protection now. It would not pass right into a economic corporation account for you until eventually you turn sixty 5. once you're sufficiently old to allure to social protection, childrens paintings and pay into social protection so which you would be able to draw it, in addition to, i'm on social protection and that i in ordinary terms get 590 a month. Out of that 590, they take out a hundred money a month in direction of my medicare coverage. they do no longer in ordinary terms provide you medicare coverage once you're elderly they make you pay a premimum for it each and each month. this is straight away taken out of your examine in the previous you get it. After the 1st of the 365 days, because of the fact of obama pointing out in his well being care plan that he won't subsidize medicare well being plans, 230 money of that 590 will pass to my healthcare fee. My copayments are doubling on my drugs and my preminum is hovering. because of the fact of Bush..i've got not got any drugs coverage for the final 3 months of the 365 days. How can SS pass broke if somebody is consistently paying into it? i think of you will see extra elderly and disabled human beings on welfare and medicaid(no longer comparable to medicare) because of the government taking extra money from us, yet social protection ain't going broke. The powers to be choose for to scare you so they could dip into the social protection money. think of of ways lots they take out of your examine each and every week for social protection and mulitply that by employing how many human beings truthfully paintings. did you comprehend that faster or later people who're wealthy, properly...they do no longer could desire to pay social protection for something of the 365 days. They cap the quantity the wealthy could desire to pay and whilst they hit their cut back they dont have pay to any extent further social protection something of the 365 days. i think of they could desire to make the wealthy human beings pay as long as they're earning wages. The undesirable like us do. I even could desire to pay taxes on my crappy 590 a month. Oh and that they could desire to no longer be loan any social protection money to absolutely everyone, no longer even the government. there is your situation

Answer 10

sounds great i wish i had a friend like you hell i would even settle for the job in japan. oh im sad now.