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?
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.
I was declared bankrupt in Sept 08.
Posted - 11 February 2009 : 19:11:11
