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T O P I C    R E V I E W
tim1010 Posted - 13 October 2010 : 12:19:03
Hi,
a friend, also bankrupt, has a problem.
He got a letter from a insolvency examiner. He has sold his sole owned house more than 1 year before he has declared bankrupt. Now the Examiner would like to know how many creditors he had at the time he has sold the house. The problem is, at this time he had some creditors but the reason to sell the house was, that his girlfriend leave him and the house was to big and to expensive for him alone. He sold this house and got a financial excess of about 25.000 pounds. He uses this 25.000 pounds to find a new home and he needed new furnitures and so on. He has send this details to the OR. But now the Examiner would like to see the business assessment of his company in 2008. He do not have this assessment because the tax accountant (also creditor) do not want to give him the needed informations.
The other problem is, that he has on the time of selling the house some debts, but the selling was not concerning this debts. He do not know how he can explain it to the examiner ! What can happen if he can not prove that the selling had nothing to do with the debts and bankruptcy and that he has used the financial excess for himself and not to reduce his debts ?
Is it possible that the OR cancel the bankruptcy proceeding or do he get a restriction ?

Thanks,
Tim

Sorry for my confuse writing ;-)
1   L A T E S T    R E P L I E S    (Newest First)
Melanie.n Posted - 14 October 2010 : 08:03:48
The OR is looking at the fact that from the proceeds of sale, were any creditors repaid? If as you state the monies were used to fund the purchase etc of an alternative property , then your friend will not have a problem.

The OR is trying to establish whether or not your friend 'preffered' any of his creditors - ie repaid them at the expense of any others.

Melanie Nicholas
29 years insolvency experience - 23 of which in the Insolvency Service
- Insolvency Manager
Jones Giles
email me at melanienicholas@jonesgiles.co.uk
telephone 01792 899996

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