I paid my sister £5000 back a month before my bankruptcy. She had originally loaned me £40000. The OR has now decided it was a preference payment and the trustee has employed a solicitor to recover the money. Obviously we are reluctant to repay the money and for the past 4 months have be speaking with the solicitor. My sister has proven she has no surplus income at the end of every month and cannot afford to make any repayments. They are now threatening to take the matter to court. What is the best cause of action as my sister does not want to go to court over the matter? Thank you
It is likely that they will get a judgment here, as there is a presumption of a preference to a family member which you do not seem to dispute. I suspect that they will get a charging order against your sister's house to secure the judgment for settlement in due course.
I did dispute it but after an interview with the OR i was judged to of acted inappropriately and my bankrupcy term was extended proving it was a preference. I have accepted that we have to pay the money back but just wanted some advice on how much and how? Would i be better offering say £3000 to sort it straight away or £20/£30 a month over a longer term?
If I were you, I would, as Kallis mentions above, speak to the OR and make a lump sum offer to conclude this matter. It is more than likely that a lump sum will be accepted as opposed to a repayment plan as the OR would far rather have the money.
All the best
John Blackadder Bankruptcy365
For help and advice on the easiest and most effective way to a debt free future, please go to www.bankruptcy365.co.uk.
I paid my sister £5000 back a month before my bankruptcy
Posted - 07 January 2012 : 00:53:37
