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peter.mo
Starting Member
13 Posts |
 Posted - 18 September 2009 : 20:50:43
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Hi,
My partner and myself were made bankrupt last week. We had our interview with the OR today. My partner took out a loan in dec 2008, to consolidate some loans and credit cards and to pay back money she owed to her dad. she didnt consolidate a loan with one creditor as it was only £16.00 a month, and we thought we could manage our finances on that basis.(bankruptcy IVA etc wher not in our thoughts as we thought at this point we could manage).
In may this year we started to struggle and stopped making pymnts to creditors. The OR is now demanding that we give her dads details to her on the basis that she favoured him over another creditor. we tried to explain to the OR that when we took the loan out in Dec 2008, we didnt think we would need to go brankupt, so there was no question of us favouring one creditor over another. It was a loan to rty and bring down our outgoings?
We did not want her dad to know we were bankrupt for various reason. The OR wants to contact him by letter. Can the OR force this based on the reason she gave above.
Thanks, your advice would be much appreciated.
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debtinfo
forum expert
2826 Posts |
Posted - 18 September 2009 : 21:15:25
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| Im afraid she can, in theory taking it as far as a public examination in open court, in reality it depends much on the individual case, how much was the repayment to your dad compared to all the other debts and how much were the debts that were not consolidated |
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peter.mo
Starting Member
13 Posts |
Posted - 18 September 2009 : 21:26:20
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thanks for your reply.
one for approx £22,000 which the OR agreed was not possible to consolidate as it was an unsecured amount with northern rock, based on our mortgage rate. So we are talking about a £400 loan at £16.00 a month!!! that was the only loan we did not consolidate!!1
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debtinfo
forum expert
2826 Posts |
Posted - 18 September 2009 : 22:02:41
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| i would imagine that what the OR is concerned about is not the £400 but that you have changed the debt from a family member to the consolidated loan lender and might not have explained her self properly. The law permits reclaiming money in a preference case for 6 months for most creditors but makes an exception of two years for a family member. also although you may not have thought of bankruptcy at the time the question would be should you have. i.e was that always the direction it was going in or was there some change (such as losing a job) after the loan which changed your financial direction. Remember that the person who interviewed you will be an examiner. above her is an Assistant official receiver that you could appeal to |
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peter.mo
Starting Member
13 Posts |
Posted - 18 September 2009 : 23:38:09
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Thanks again.
If her dad confirms that he did receive a payment from my partner. What then? Is the OR going to be happy with that, and will the bankruptcy then continue as normal?
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RHB
Senior Member
1159 Posts |
Posted - 19 September 2009 : 08:10:28
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| It could be that her dad is asked to repay the money. |
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RHB
Senior Member
1159 Posts |
Posted - 19 September 2009 : 08:12:01
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| So it could then be shared out equally amongst the other creditors. If they are thinking that this is a way to hide assets then there could be a BRU/BRO as well. |
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peter.mo
Starting Member
13 Posts |
Posted - 19 September 2009 : 10:24:05
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Thanks for that!
The situation gets worse!
I asked my partner about the money she said she gave to her dad as I didnt remeber her giving him the money we owed him. She was convinced she did and told the OR this. She bit the bullet this morning and asked her dad exactly how much she give him. Her dad has told her that she didnt give him the money. (whch is what i thought) I was convinced she used it to consolidate other stuff e;g windows for our house and couch. Ive told her to request a statement from the Loan company for the period when she took out the loan (which she should have done in the first place, but she didnt get her bankruptcy info pack until the morning of the interveiw.
I dont know if its because she is 7 1/2 months pregnant and is not thinking clearly, but this will look like she is trying to lie to the OR. This isnt the case, iss just a genuine mistake. What will happen if the statement confirms that she did not give money to her dad??? Will the OR accept that she has made a big error???? When you consolidate again and again and borrow money off family again again, you feel like you dont know where any of your money has gone!!!
I am really starting to panic a bit now!!
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Edited by - peter.mo on 19 September 2009 10:34:01 |
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Jane.l
Average Member
511 Posts |
Posted - 19 September 2009 : 11:16:27
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If her dad did not receive this money, then the OR will want to know exactly where it went, I think the possiblity of a BRO/BRU will apply
roughly how much money are you talking about?? |
Edited by - Jane.l on 19 September 2009 11:18:01 |
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peter.mo
Starting Member
13 Posts |
Posted - 19 September 2009 : 11:18:48
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So if she can prove the money went else where. the worst case senario is that she will get a BRU/BRO. is that correct.
Thanks again.
She told them she gave him £3000. This is something we spoke about at the time. but as far as I was aware we used the money for other stuff. but she was certain we give him it. It turns we didnt after speaking to him.
We owed approx £30,000 each to all creditors. She has got her figures messed up and i think she has panicked.
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Edited by - peter.mo on 19 September 2009 11:45:07 |
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debtinfo
forum expert
2826 Posts |
Posted - 19 September 2009 : 12:50:07
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| don't panic, first of all tell the or she made a mistake, will it look suspicious, yes, but it is the truth and it happens, it is a small part of the overall debt. As long as you correct the mistake quickly she will not face a bro/bru for misleading the OR. Next she will need to account for what did happen to the money, if it was used to consolidate other debts find out and inform the OR. |
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peter.mo
Starting Member
13 Posts |
Posted - 19 September 2009 : 14:04:12
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Thanks for that.
I have another question ..sorry.
My mother got a loan for myself in her name about 18 months ago. It was to assist with the purchase of the house I live in. I have never missed a payment to date, because i did not want to put my mother in financial difficulties as well. I know the OR will look at this as favouring her over other creditors. Can they ask for the money back from my mother, if so, how? if she has been paying off a loan with it.
I have explained to my mother our situation, and she has told me she can afford to carry paying the loan for me from now on, as she knows payments to her can not be taken into account in outgoings.
Any advice?
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Jane.l
Average Member
511 Posts |
Posted - 19 September 2009 : 14:10:21
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| If the loan is in your mother's name, then legally the debt is hers, not yours, you will not be allowed to continue making the payments to her |
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peter.mo
Starting Member
13 Posts |
Posted - 19 September 2009 : 14:15:45
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Thats fine, I understand that i would not be able to make payments towards that loan anymore. What I am concerned about is, can the OR ask for the money I have given her to pay it to date. Bareing in mind she is the only creditor I have continued to pay.
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Jane.l
Average Member
511 Posts |
Posted - 19 September 2009 : 14:19:14
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| yes, I suppose your mother would go down as one of your creditors and as you have been favouring her over other creditors, then yes, you may have a problem |
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peter.mo
Starting Member
13 Posts |
Posted - 19 September 2009 : 14:25:08
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I was just trying to work out what would happen if they asked for the money, and obviously my mmother has been paying the loan with it, she will not have it to give the back??
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Topic |
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Hi,My partner and myself were made bankrupt
