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Nick2009
Starting Member
9 Posts |
 Posted - 11 April 2009 : 22:45:21
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Thanks to John my mind was put at ease about beneficial interest.  
I now have another query. 
I haven't been earning enough to meet my monthly repayments to my creditors for a long while. In order to keep up with the payments I've been robbing Peter to pay Paul, so to speak. i.e. transferring balances between credit cards to free up cash.
Unfortunately this became impossible just using my own cards, so because my Mum has two MBNA cards with some crazy 36% APR rates and were offering 0% transfer deals we decided to help each other out.
She would transfer a balance from one of her cards to one of mine, and then using a promotional credit card cheque the balance would be put back on her card when I paid the cheque into my bank account to use to pay my monthly repayments.
Does anyone know if the Official Receiver is likely to take issue with all this transferring back and forth?
Also it's possible she's come out of it about £2000 up, is the Official Receiver going to demand that be repaid, and if so how long would she get to repay it, and will it make a difference that she's disabled and getting benefits? Can the Official Receiver seize her assets (house and car)?
As I live in my Mum's house, could I say the £2000 was to cover unpaid board that I owed her?
Thank you in advance for any thoughts,
Nick.
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RHB
Senior Member
1159 Posts |
Posted - 12 April 2009 : 08:43:27
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| Will she need to go bankrupt to if she is owing a lot of money & is on benefits? |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 12 April 2009 : 10:01:07
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If she went bankrupt then if there is equity in the home the OR could seize it.
As to the car, if she is disabled is it a motability car? If it is then it's not her car so should be ok. If not and it is worth more than £2500, the OR would want it sold and a cheaper one bought.
If it is only you that is thinking of BR and your mother can manage her debts, then the house and car are ok.
The glimmer gets brighter all the time
Jan
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Nick2009
Starting Member
9 Posts |
Posted - 12 April 2009 : 14:26:21
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Thanks for the replies.
No Mum's not going bankrupt, and the house and car are her's outright.
We could just do with knowing if the OR will demand the £2000(ish) leftover from all the balance transfers and what powers the OR has to get it.
Nick.
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 12 April 2009 : 14:41:19
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I can't help you with that one I'm afraid, hopefully one of the experts will be along - they're probably all full after eating their Easter Eggs!
The glimmer gets brighter all the time
Jan
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John
New Member
United Kingdom
73 Posts |
Posted - 12 April 2009 : 15:22:27
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Hi
sorry I'm not clear on how your Mum has ended up £2K better off.
From your post she would transfer a balance sum to you which would be repaid, unless you are saying that this did not happen every time and the sum total transferred back to Mum from your account(s) was £2K more than she ever transferred to you and therefore £2K of your current debt is due to this action.
If this is the case your Mum owes you £2K and the SoA specifically asks if anyone owes you money and to say no and then it later be found from the account statements this was false that constitutes perjury on your part.
So, by disclosing the truth the OR can, and will, exercise his authority to reclaim the money from Mum in cash or in assets including her car and or property.
John White
England Jackman & Spacey |
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Nick2009
Starting Member
9 Posts |
Posted - 12 April 2009 : 17:16:52
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Thanks for the reply John.
quote:
Originally posted by John
unless you are saying that this did not happen every time and the sum total transferred back to Mum from your account(s) was £2K more than she ever transferred to you and therefore £2K of your current debt is due to this action.
Yes, that's how it's come about...
quote:
Originally posted by John
So, by disclosing the truth the OR can, and will, exercise his authority to reclaim the money from Mum in cash or in assets including her car and or property.
Right   but I am behind with my board (I don't think I've paid towards bills and stuff for something like over a year!   ) so could that be offset against the 2K?
And does the OR give her any timescale in which to pay it back, can it be in installments, or is all in one go straight away???
Nick.
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Edited by - Nick2009 on 12 April 2009 17:20:43 |
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John
New Member
United Kingdom
73 Posts |
Posted - 12 April 2009 : 21:56:46
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Hi
as these monies are owed to your Mum, by paying this via the £2K transfer that's a preferential payment which is not allowed.
It's not likely that instalments would be accepted from your Mum. There is no preset time limit for the repayment as such. The OR will want the money back within what he considers to be a reasonable period from when he comes tro deal with this particular issue.
It would be far better to adopt a proactive approach for the repyment rather than get the courts involved with your Mum's assets as that can get quite messy.
The obvious source would be Mum's car.
Is it worth a high enough sum to sell it and buy a replacement for £2K less, than pass the balance £2K to the OR?
John White
England Jackman & Spacey |
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Nick2009
Starting Member
9 Posts |
Posted - 12 April 2009 : 22:15:56
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Hello again John.
quote:
Originally posted by John
Hi
as these monies are owed to your Mum, by paying this via the £2K transfer that's a preferential payment which is not allowed.
The last transfer was in February (the £2K) can I not claim that was for board owed up until then. I wasn't yet considering bankruptcy in Feb so would it still be considered a preferential payment?
quote:
Originally posted by John
The obvious source would be Mum's car.
Is it worth a high enough sum to sell it and buy a replacement for £2K less, than pass the balance £2K to the OR?
It's probably not even worth £2K... |
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RHB
Senior Member
1159 Posts |
Posted - 13 April 2009 : 08:32:50
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| That would still be a preferential paymenty because if you are insolvent in April it is very unlikely you weren't in difficulties two months earlier. |
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John
New Member
United Kingdom
73 Posts |
Posted - 13 April 2009 : 10:25:16
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Hi
RHB is correct and in any case, if you claim £200 per month expenditure for "Board" you have paid 10 months in advance which is not permitted unless it can be proven that the landlord insisted on such payment in advance as you were, or were about to become, bankrupt.
For this to apply your Mum must have known of your pending bankruptcy and therefore it's a preferential payment.
This would also free up £200 per month in disposable income for a 10 month period which would increase the prospect of an IPA and also increase the monthly payments too.
As per my my previous post proactive action is the simplest remedy for both you and your Mum.
John White
England Jackman & Spacey |
Edited by - John on 13 April 2009 10:25:55 |
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Topic |
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Balance Transfers with a 3rd Party.
