we owe 60k, 30k of which is owed to parents as they took loan out for partner. if we went bankrupt what happens to the monthly payment of £360 to the parents as this needs to be repaid to them every month
it would have to be included in the bankruptcy - you would not be able to pay a debt 'outside' the proceedings as this is called as 'preference' ie preferring one debt over another. A difficult situation I appreciate, when a family member has made a loan in good faith, but they are for bankruptcy pruposes no different to a credit acrd or loan - you would not be able to repay it.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles
do you own a property with equity? If you do your parents should place a charge against it, before you declare bankruptcy, for the sum of £30K which would also reduce the possibility of the OR having an interest thus, potentially, safeguarding your home.
As the loan from your parents would now be secured against the home it becomes unaffected by bankruptcy so you would now have only £30K of unsecured debt remaining.
we owe 60k, 30k of which is owed to parents
Posted - 06 March 2009 : 14:04:06
