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| T O P I C R E V I E W |
| Sindy |
Posted - 30 March 2009 : 21:50:37
As mentioned before, I have paid off approximately £10,000 to some of my creditors who ofered me a substantial discount in order to close the accounts.
John did mention to me that this could be viewed as prefferential treatment by the OR and claimed back, but what happens with the funds once they are claimed back? I'm assuming they will be distributed equally amongst my creditors, seeing as these came from my father is there anyway a percentage of this money would go back to him?
Also could the creditors refuse to pay this money back? Would they be enforced to do so etc...
This is my last post I feel like I've exhausted all my question asking and also u guys.... am gna go see my CAB tmrw n will defo keep u guys posted.
Many thanks |
| 6 L A T E S T R E P L I E S (Newest First) |
| Sindy |
Posted - 31 March 2009 : 10:53:28
Thanks once again for clarifying this John, I did not expect to be made bankrupt rather was genuinely trying to get all of my outstanding balances reduced so that I could pay off all of my creditors, but unfortunatley I cannot continue to do this any longer. I have exhausted all of my avenues and don't think I have much choice left, even had two jobs at one time however, now I am having trouble getting the one job! |
| John |
Posted - 31 March 2009 : 00:36:29
Hi
you could of course explain it all in the way you suggest and it may well be true if as you say your father did not expect the monies to be repaid.
My only thought is why?
If it was a gift and you chose to pay a few creditors the OR may claim the money back and distribute it pro rata amongst all creditors.
If it was a loan then the OR may not.
Either way if you choose to pay your father back after discharge, or rather gift him £10K after discharge, that's your choice.
However in one scenario you have made preferential payments, not good, and in the other scenario you haven't.
There is another aspect to consider regarding preferential payments.
Q 3.6 on the SoA asks - In the last 2 years have you made any payment to a creditor, other than in the ordinary course of business, with a view to improving the position of that creditor in case you became subject to insolvency/bankruptcy proceedings?
There is clear inference that when you made these payments you must have KNOWN that you were, or were about to become, insolvent/bankrupt for those payments to be deemed preferential.
So if your circumstances changed, post the payments, and the change in circumstance directly resulted in your bankruptcy then technically the payments are not preferential whether they were made within the previous 2 years immediately prior to bankruptcy or not. If this is the case then the correct answer to Q3.6 should be NO.
Many thanks for the compliment Sindy but there's nothing Saintly about it......it's an addiction!!!!! LOL
John White
England Jackman & Spacey |
| Sindy |
Posted - 30 March 2009 : 23:20:57
John, what if I was to cheekily suggest that I paid the money and that my father gifted it to me which in a way he did i.e. he does not expect it back, however, I know this has caused him a massive financial strain, therefore, at some point in my life I wish to pay him back. The money was all paid out of my account. Would this make a difference?
BTW, You never seem to tire/get bored of answering questions..... ur a saint! |
| John |
Posted - 30 March 2009 : 22:50:16
Hi guys
I'm afraid that's not the case.
Preferential treatment can only happen if the money with which the selected creditors were paid in preference came from you. In your case it came from your father and therefore should be treated no differently than if you had consolidated or changed card provider for a 0% transfer benefit.
That is, you have paid one, or more, creditor with money obtained from another (your father).
Therefore your father is added to your list of creditors to the tune of the sum repaid and the repaid creditor's retain the payments made to them.
John White
England Jackman & Spacey |
| Sindy |
Posted - 30 March 2009 : 22:09:33
Thanks Sparkle |
| Sparkle83 |
Posted - 30 March 2009 : 21:55:07
at a guess, I'd say the companies have to give it back (I've seen this happen where repayment has been made to indivduals and they have been chased for it). I would then think it will all go pro rata (so split equally against the percentage of each creditors amount owed to them). I would doubt that any of that money will come back to your father, as it was already used to clear debts, and thats what it'd be used for in this scenario.
hopefully someone more knowledgeable will weigh in soon |
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