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T O P I C R E V I E W
pablocon
Posted - 11 February 2009 : 19:11:11 I was declared bankrupt in Sept 08. At the interview with the OR I was asked had I made any large cash withdrawals prior to Bankruptcy. I told them I had withdrew £1500 on credit cards to repay a debt to my dad (I still owe him 6k). They asked my dad for confirmation which he did in Jan 09. He has now received a letter requesting his proposals on repaying this money to the OR. They quoted section 340 of the insolvency act. As he no longer has the money how far can they take this?
4 L A T E S T R E P L I E S (Newest First)
pablocon
Posted - 12 February 2009 : 21:56:16 Thanks for your replies. Would be grateful for any more information on this matter.
pablocon
Suzanne
Posted - 12 February 2009 : 13:38:55 Hi pablocon
I would say that in light of the small amount involved the OR would not pursue it further as it would not make commercial sense to do so.
You would however, probably be subject to a BRU if they felt that the amount was material to the overall debt position.
if your father is unable to pay there is not too much that can be done about it except you will very likely be looking at a BRU/BRO for making the preferencial payment in the first instance.
The court has to sanction the attempts by the OR to recover the preferential payment. If this is done I am not entirely sure what steps can be taken to force your father to repay the monies. I will research the matter further for you and post again within today - unless someone else on the forum comes back with the answer first of course.
timendi causa est nescire
Skippy
Posted - 11 February 2009 : 21:01:52 Hi Pablocon and welcome to the forum.
I'm sorry that I can't answer your question - I know that the OR has the power to reclaim the money, but I'm not sure how they can do this.
One of the experts will be along shortly to help you, but I wanted to welcome you to the forum x
Tomorrow is a mystery, yesterday is history, today is the present, a gift to make the most of.
