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BankruptC
Senior Member
1030 Posts |
 Posted - 11 July 2008 : 20:02:45
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Hi all,
That's it really. I just don't understand what a preference payment is. I am getting myself into a tiz (sp?) about this cos i keep thinking of things we have paid for in the past and wonder if they could be seen as this?
We have stopped paying our creditors now. Some have already been paid this month though, are these preference payments???
Help please!
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indy2005
Junior Member
458 Posts |
Posted - 11 July 2008 : 20:13:58
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Hi,
I am sure someone will come along to answer this shortly, but I believe if you pay one creditor off over another prior to BR, this is seen as pretty grim. Especially if you pay off a family member for example, and leave your other creditors hanging.
I am hoping a preference payment is a reference to debt payments only, as I gave my wife a 10K lottery win of mine and we spent it. I didnt owe my wife any money, and we have spent the money over the last 11 months...but in the back of my mind is the worry that this is some kind of preference payment. I will watch the thread with interest.
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melanie_giles
Senior Member
1191 Posts |
Posted - 11 July 2008 : 21:38:49
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A preference is only proven if the Trustee can prove intent to prefer - if the payment is made to a non-associate ie a relative or business partner. Intent is assumed if the payment is made to an associate.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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Needafriend
Junior Member
United Kingdom
344 Posts |
Posted - 13 July 2008 : 08:47:31
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Hi sorry to add in to this blog, but when you say creditors is that those that are listed on the SOA and not general household bills like gas, electric, phone which are paid out of ordinary income and can vary in amount needed to be paid and as far as i was concerned these are important bills to pay or you would be cut of etc.
Please advise
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debtfreesusie67
Junior Member
256 Posts |
Posted - 13 July 2008 : 09:40:08
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Hi josilverplayboybunnie
yes you are right you need to carry on paying general household bills or as you have said you will be cut off. These are not preferential payments these are necessaties (sp)
Hugs
Sue
The only way is up
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
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Helen030166
Junior Member
United Kingdom
212 Posts |
Posted - 14 July 2008 : 14:38:29
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hi, sorry to barge in on this thread but we are going bnkrupt on the 21st of july bu have had a letter from N Power saying they will cut us off on the 17th but as these will be one of our Creditors when we petition bankruptcy will it be seen as a reference payment if we offer somthing to stop them cutting us off?
Thanks for your Help,Helen x |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 14 July 2008 : 16:40:18
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Hi Helen
No it won't be seen as a preference payment.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 14 July 2008 : 16:45:20
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Hi Helen,
I agree with Suzanne that this won't be seen as a preferential payment. However, it is highly unusual these days to get cut off. Are they just threatening to cut you off, or are they actually going to do it? In any event, the money you owe can be included in the BR.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
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BankruptC
Senior Member
1030 Posts |
Posted - 14 July 2008 : 17:28:39
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Thanks for your replies.
The advice we have been given on here re. our car is as follows:
As it is on HP and we still owe £3000 more than the value of the car, the OR will have no interest in it, and if the HP company agrees we can carry on paying (which they do), we should be able to keep it and carry on paying the HP (£216 per month). Have I got that right?!
Therefore, if we continue paying this now, presumably this won't be seen as a preference payment?
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melanie_giles
Senior Member
1191 Posts |
Posted - 15 July 2008 : 08:46:49
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No this is not a preference payment, as the car is subject to a hire purchase agreement which gives the lender proprietory rights and the loan is therefore secured. If you do not pay the instalments, the HP company may have the right to repossess the car.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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What is a preference payment??
