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JW123
Starting Member
2 Posts |
 Posted - 05 January 2012 : 15:48:04
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| I am after some advice for my mother who recently went bankrupt. 5 months previous to her bankruptcy my partners father lent her £3000 for flood damage which she then paid back. The official receiver is now saying this money needs to be paid back by my partners father as he was treated as a preferential creditor. I just wanted to find out if they can do this and how hard they can pursue him for the money |
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Melanie.n
forum expert
United Kingdom
1282 Posts |
Posted - 05 January 2012 : 17:19:21
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If the Official Receiver, takes the stance that indeed the debt was repaid in 'preference' of her other creditors, then yes, they do have the right to demand repayment of the money, so that any funds of the estate may be paid on an euqoal/pro rata basis to all of her creditors.
Although I can completely understand why she repaid the money, it all depends on whether the OR takes the 'emotional vier' or a black and white view (to be honest the latter is usually the case, but it would be worth her putting a full explanation with regard to the debt, the necessioty at that time to borrow the money, whether it was lent on a short-term basis on the understanding that she would repay asap, etc and hopefully the oR will take a softer view on the matter. She has nothing to lose by putting it in writing to the OR - who knows it may work! stranger things have happened!
Sorry if this was not the response you expected to receive, Melanie
Melanie Nicholas CertDR
30 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
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Steve Thatcher
New Member
United Kingdom
70 Posts |
Posted - 06 January 2012 : 11:02:00
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I agree with Melanie. I have in the past had similar situations. I have been able to overcome them but arguing that the money was lent on the strict proviso that as soon as it was able to be repaid it was done so. If this term was not agreed to then the money would not have been lent. By this way, we have been able to overcome the presumption that the repayment of money was a preference.
Steve Thatcher
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JW123
Starting Member
2 Posts |
Posted - 07 January 2012 : 00:16:26
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Hey thanks guys for your prompt responses. I think i will write a letter to the OR stating just that.
I do have have one question that is bugging me. I went bankrupt in 2010 and i didnt know anything about one creditor having 'preferance' over another, at that time. I paid off one creditor in full with a credit card (Yell.com) and to my knowledge the OR didnt take action to recover that payment, even though it was within the 6 month window, so is it case by case or can examples like this be used against the current action? I hope that makes sense. Thanks
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Essie
Junior Member
United Kingdom
115 Posts |
Posted - 07 January 2012 : 01:17:08
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Good luck with this. please let me know how you get on. I did the same with very similar circumstances and the OR is trying to chase my terminally ill dad.
What I'd like to know is - if you paid the £3k to say - Natwest, would the OR ask Natwest for the money back?
Finally got head out of sand in October 2010
BR March 2011
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Viki.W
forum expert
United Kingdom
2211 Posts |
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debtinfo
forum expert
2826 Posts |
Posted - 07 January 2012 : 10:14:16
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well not quite for practical purposes, as you can imagine a company like Natwest is involved in many many bankruptcies in various forms, often unless it is very significant for example if the preference was £50,000 they would not bother as they would take in one case and give right back in another case where there was a distributon to creditors so it is not worth doing, especially as with an amount that low there is little benefit to other creditors as the bankruptcy costs come first as well as the fact that these major creditors often have a right of set off anyway
with a local or family creditor, they are unlikely to be involved in other bankruptcies |
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Viki.W
forum expert
United Kingdom
2211 Posts |
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BR Advice
