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alanhe
Starting Member
United Kingdom
8 Posts |
 Posted - 01 June 2009 : 10:35:09
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About 5 years ago my mother and I purchased a motorhome on a 50/50 basis on the understanding that I would pay back her 50 percent as soon as I could.
The payback was very slow and 18 months ago I found myself with credit card / loan debts of around 75k and still owing my mother around 15k. As my debt repayments were completely out of hand and no longer manageable I 'gave' my interest in the motorhome to my mother to pay back her debt and initiated a DMP plan to manage the debt repayments.
I now wish closure on the debts and want to go BR. My question is whether the OR will consider giving my mother my interest in the motorhome as a preferential payment and I would get a BRU. And more importantly whether the OR can in any way force my mother to repay any monies.
Thanks for your help, really don't want to involve my mother in my BR
Alan |
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Niobe
Administrator
United Kingdom
4590 Posts |
Posted - 02 June 2009 : 08:36:52
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Hi,
I don't know I'm afraid, but I'm bumping this back up in the hope that one of the experts picks up on it.
The glimmer gets brighter all the time
Jan
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 02 June 2009 : 11:17:41
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Hi
The time limit for transfer of assets to associated parties is 5 years. So i'm afraid the OR would expect your mother to pay that money back or could potentially overturn the transaction and force a sale of the motor home.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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alanhe
Starting Member
United Kingdom
8 Posts |
Posted - 02 June 2009 : 11:28:08
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Hi Suzanne
Thank you for your reply.
Obviously at the time of transfer I was happily starting a DMP and had no intention of BR. Are there no exceptions to this????
Alan
quote:
Originally posted by Suzanne
Hi
The time limit for transfer of assets to associated parties is 5 years. So i'm afraid the OR would expect your mother to pay that money back or could potentially overturn the transaction and force a sale of the motor home.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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alanhe
Starting Member
United Kingdom
8 Posts |
Posted - 02 June 2009 : 12:13:26
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Maybe I am reading the wrong guidelines re declaration of assets to the OR, but the form I found online states -
If you have sold or given away any of your assets in the last 5 years
and received less money than they were worth or no money at all you
must provide full details of the transaction.
The trustee may apply to the court for an order restoring property to
him or her if you disposed of it in a way which was unfair to the
creditors (for example, if before bankruptcy you had transferred
property to a relative for less than its worth).
The point here is that the asset ( my share of the motorhome ) was sold to my mother at the market rate and used to payback the loan I had from her
Therefor I do not need to declare it??
Alan |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 02 June 2009 : 13:49:34
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Alan
This could be mis-interpreted, but the basics are that you transferred an asset to your mother in payment of her debt so putting her in a better position than that of your other creditors, who you still owe money to. If you had sold your half, you could have treated all your creditors fairly by sharing the money on a pro rate basis.
Does this make sense.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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alanhe
Starting Member
United Kingdom
8 Posts |
Posted - 02 June 2009 : 13:58:19
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Hello Suzanne
Yes I can understand the logic there ... but unless I am looking at the wrong instruction document it says I have to declare any asset which was sold BELOW market value.
My interest was sold at market value, ie £15k ( which actually with depreciation would be above market value ), the proceeds of which were used to payoff the loan to my mother.
Can you please point me to the relavent section on the instruction document that says I need to declare this??
thanks for your help
Alan |
Edited by - alanhe on 02 June 2009 13:58:57 |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 02 June 2009 : 16:25:58
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Alan
I think you know what you should do. It is up to you whether you do it or not.
You should not really rely on the wording of specific questions to enable you to avoid providing the information. There are a couple of other questions that refer to this type of transaction, but none that are specific to this situation.
You may get away with it, but if the OR does find out you will probably get a BRU and they will try to get the money back. Would be interesting to see what does happen, so let us know what you decide to do and what the outcome is.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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Worried About Asset Disposal
