Go on Holiday while Bankrupt
You can go on holiday if you are Bankrupt. However the difficulty you will face is finding the money to pay for it.
Included in this article:
- Can you go on Holiday if you are Bankrupt?
- How can you pay for a holiday?
- Can someone else pay for you?
- Can you take a holiday you already paid for?
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Can you go on Holiday if you are Bankrupt?
If you live in England or Wales there is nothing to prevent you going on holiday or travelling while you are bankrupt. Generally speaking you do not have to tell the Official Receiver (OR) that you will be away from home for a week or two.
You can even travel abroad if you like with no issue. You are not going to be stopped at the airport because you are bankrupt.
The only time it is important that you do inform your OR is if you are planning to be away for an extended period. The OR must be able to contact you if they need to.
If you go Bankrupt in Northern Ireland you need to get approval from the Official Receiver and the High Court in Belfast before you can travel abroad.
How can you pay for a Holiday if you are Bankrupt?
Once you are bankrupt you will have little or no access to credit. It is therefore unlikely you will be able to borrow money to pay for a holiday.
As such an alternative option is to try and save the money you need. Once your living expenses budget has been agreed you can spend or save it as you wish.
You are allowed to keep any money you save from your budget. However you will not normally have a specific allowance for saving towards a holiday. Therefore it will not be easy but you might be able to save something.
You will normally have specific amounts in your living expenses for entertainment and emergencies which you could put aside and use to help pay for a holiday if you wish.
Can someone else pay for you to go on Holiday?
You may be lucky enough to know someone who will pay for you to go on holiday. There is absolutely no reason why they cannot do this while you are bankrupt.
However the money must come from their funds. If you are living with your spouse or partner they can pay for the holiday as long as this is done out of their own income.
If someone else wants to pay for your holiday there is nothing to stop you taking them up on this offer. However it is normally best if they pay for the trip directly. If they were to give you the money it might be mistaken as a windfall which would then have been given to the Official Receiver.
If a friend or family member offers to lend you money you can take them up on this offer. However you are not allowed to start paying them back until after you are discharged.
Can you take a Holiday you Paid For before you went Bankrupt?
If you already paid for a holiday before you went bankrupt it is unlikely that there will be a problem with you taking it. Even if it cost a substantial amount it will normally be impossible for you to cancel and get a refund.
As such the Official Receiver (OR) has no incentive to stop you taking the break. Having said that if you have only paid a deposit you are unlikely to be able to afford to pay the balance from your own money.
Any surplus income you have available will have to be handed to the OR. As such you will simply lose your deposit unless someone else is able to pay the outstanding balance for you.
Be careful about paying the balance for a holiday just before you go bankrupt. Using credit to do this it could be seen as irresponsible borrowing. Using cash instead of giving it to the OR could result in your bankruptcy being extended.
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