| Author |
 Topic  |
|
|
Christina85
Junior Member
United Kingdom
208 Posts |
 Posted - 30 June 2008 : 21:27:51
|
Hi all,
I have started to fill out the BR forms for my husband and I, I am a little worried about the OR saying I have given preferential treatment to a cedator.
Basically when we bought our house (soon to be repossessed) my dad let us use money on his credit card to go towards some of the legal fees.
My husband and I took a secured loan in Jan this year and cleared the amount we owed on this (£2500) as this was the highest credit monthly payment we had, which we needed to clear to be able to afford the secured loan.
Our overall debt after repossession will be approx 65k- will this amount we used to clear off this card be seen as preferential treatment? Will they make my dad pay it back? and do you think that we should make the OR aware of this straight away or only mention if asked!? I do not want to be dishonest, but was not aware at the time how this could affect things. If so do you think we would get a BRO?
Any advice, as always is much appreciated
Christina |
|
|
melanie_giles
Senior Member
1191 Posts |
Posted - 30 June 2008 : 21:36:11
|
It is likely that the OR will attempt to recover this money from your father, as you have effectively dissipated an asset to pay off one preferred creditor - who is a family member and thus has associated status to you.
You should definately make the OR aware of the payment, because that is what the forms require you to do.
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 |
 |
|
|
Christina85
Junior Member
United Kingdom
208 Posts |
Posted - 30 June 2008 : 21:41:39
|
thank you for the reply. What would happen if my dad couldn't afford to pay this money back? (they are not in the best of financial circumstances themselves)
Also from this secured loan I also cleared £500 off another credit card, but unfortunately since then we have spent this money on the card again and are left still owing £500 on this- would the same thing happen to this?
Do you think we would get a BRO/BRU?
|
|
|
|
melanie_giles
Senior Member
1191 Posts |
Posted - 01 July 2008 : 00:10:37
|
If your father cannot pay then the OR will possibly look to his assets to recover the money due, or allow him to repay it in instalments.
I do not feel that this would warrant either a BRU or a BRO.
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 |
|
|
|
Christina85
Junior Member
United Kingdom
208 Posts |
Posted - 01 July 2008 : 08:09:09
|
Thanks for your reply
on the form do I list my father as the creditor or the credit card company(which I am an additional card holder on?)
As I now at the moment do not owe on that card, do I put it on the page that asks about pref treatment or do I list it as an unsecured creditor? |
|
|
|
melanie_giles
Senior Member
1191 Posts |
Posted - 01 July 2008 : 08:24:13
|
You would list your father as an unsecured creditors and also list details of the transaction on the preferred creditors section.
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 |
|
|
|
maizie
Average Member
United Kingdom
566 Posts |
Posted - 01 July 2008 : 10:27:52
|
I am in a similiar situation.
I owed my parents some money and I pay them £30 a month. When I went into my IVA they told me this couldn't be included unless my dad came forward as a creditor. I didn't want this to happen as my father is unaware of my IVA. They told me I could continue to pay this but it would have to come out of my contingency money.. which is what I have been doing.
I am now completing the forms for bankrupty and on my bank statements it shows a bank transfer of £30 a month to my father... will the OR want this money back from my father?
Maizie |
|
|
|
Christina85
Junior Member
United Kingdom
208 Posts |
Posted - 01 July 2008 : 21:42:25
|
hi
I think this is only an issue for me because I cleared what I owed to my dad in one high lump sum rather than splitting this between all of my creditors, so i don't think this would matter as you are continuing to pay bit by bit each month?
I am sure an expert will correct me if i am mistaken, i just didn't want you to worry like i am if you don't need to be!
christina |
|
|
|
JulianDonnelly
Junior Member
United Kingdom
325 Posts |
Posted - 02 July 2008 : 11:28:57
|
Hi Mazie and Christina,
If you were paying your creditors (even in a DMP) and were making small monthly payments to a family member, you'll likely be fine. However, in the case of a large lump sum payment, this will need to be disclosed as preferrential treatment and it is likely the OR will try to recover the money and disburse it on a pro-rata basis to all of your creditors.
Regards
Julian Donnelly
Spokesperson for www.Bankruptcyhelp.org.uk |
|
|
| |
Topic |
|
Preferential treatment?
