| T O P I C R E V I E W |
| simpip |
Posted - 08 June 2010 : 22:08:30
i sold my before the bankrupty and said i owe my sister the money so they ask her to pay it. she hasnt so now there asking my wife to pay it cos it went through her bank and class as a gift from me!! does she have to pay or refuse like sister. |
| 6 L A T E S T R E P L I E S (Newest First) |
| Bridgewood |
Posted - 10 June 2010 : 09:31:11
Hi Simpip
By paying your sister you have committed a preference under the Insolvency Act as you have put her in a better position than all your other creditors. The OR can apply for this transaction to be set aside, and your sister will have to repay the amount she received
If she refuses she can be pursued through the Court.
If I understand your post correctly, it appears the OR has taken the view that you gave the sale proceeds to your wife who then paid your sister - if this is the case it is a gift (or transaction at undervalue) by you to your wife which is also open to challenge by the OR as you have tried to put an asset (£3,000) beyond the reach of your creditors. In this case the OR can pursue your wife for the money
Bridgewood specialise in helping people deal with their debts and make the most of their financial situation - providing free, no obligation debt advice.
We can also setup a complete range of solutions including debt management plans, IVA and bankruptcy support. |
| gettingoutofdebt |
Posted - 10 June 2010 : 08:28:19
£3000 may not pay a lot of your total debt off but any assets/money you have should be paid pro-rata to each creditor. What you have done is known as creditor favouritism and is frowned upon by the OR. |
| simpip |
Posted - 09 June 2010 : 22:12:00
but if they take my wife to court to pay it really its me going pay! and end of day £3000 shared around of my debt wont pay a lot off!! |
| Daniel Griffiths |
Posted - 09 June 2010 : 18:51:09
Hi Simpip
Look at it from their point of view, you sold an assett just before bankruptcy and paid the cash over to your sister who you say you owe money too, any trustee is going to dig into this he is working for your creditors. I am afraid the bankruptcy firm who told you to do this should not have, if you sold the car for market value and used the cash for bankruptcy fees and then bought a cheaper car to reduce your living costs then this is sound argument, the money is then explained and gone and nothing can be done however the trustee believes this money is somewhere, used to pay an asscociate creditor and he will want this money and will continue to do what he can to get it. |
| simpip |
Posted - 09 June 2010 : 18:07:56
i sold my car cos it was just over £3000 and was told to by the firm that did the bankruptcy for me. and what i did was payed sister that i owe£2000 and bought a chaeper car but put in wifes name. so 1st they ask my sister for the money she hasnt payed it back. so now there says there no evidence i payed her cash which it show on my wife statment which they got! so there asking my wife to pay it £3000 total but if she does that means it looks like we was telling lies and they do us for perjury. |
| gettingoutofdebt |
Posted - 09 June 2010 : 08:28:40
I'm not too sure what you are saying here. What did you sell? Did you sell something and then use the money to pay your sister for debts you had with her? |
