Or wants money from family please help

Darrenm325 · 28 October 2017 at 10:41AM

Could any one help please
I was declared bankrucpt in Aug this year
Last year sept 2016 I paid my dad Money that I owed him of 5 grad for money he let me over the years with my divorce and back street loan lenders who I was in real trouble with,
When I filled the forms out and when I had my interview with the OR I did state this and the OR said my dad would have to write to conferm this was true to the OR
Any way my dad has received a letter from Clark and Wilmot solisters asking him to pay them the money
As you can imagine my dad has gone mental at me we have had a big fall out as he no longer has the money and says if they want the money then I will have to find it
Some one please HELP

fatbelly · 28 October 2017 at 10:55AM

You're not going to be able to 'find' money while you're in a bankruptcy.

Your Dad has had a demand for 5k - if he cannot pay it then he needs to take advice about his own situation - he could try National Debtline or CAB for starters.

The OR is following their internal guidelines - in their eyes you made a preferential payment to one creditor and they are seeking to get it back to distribute to all your creditors, after their fees.

As this happened 11 months before your bankruptcy there is an argument that you did not know you were insolvent, had no intention of going bankrupt and your decision to repay this money was not an intention to 'prefer' your dad.

However, 'Where the person who benefitted from the preference is a connected party or an associate, then it is presumed (unless the contrary can be shown) that the debtor was influenced by a desire to prefer '

So this really depends on your Dad's own situation now as to how far the OR is going to push it - he needs advice.

Darrenm325 · 28 October 2017 at 11:02AM

If needs be I have to go to back street lender or do something My Dad has gone mental
He has not got all the money to give them and he is worried that now his credit file is affected and he going to be take. To court

fatbelly · 28 October 2017 at 11:14AM

Darrenm325 wrote: »

If needs be I have to go to back street lender or do something My Dad has gone mental
He has not got all the money to give them and he is worried that now his credit file is affected and he going to be take. To court

Darren - can I ask you not to do anything in haste.

You've come to the right place. There are people who post here who have more experience than me with bankruptcy.

Although I am a debt adviser with the CAB, I work in an area where not many people have debts over 20k so I don't do that many bankruptcies. But if your Dad genuinely cannot pay then that is what I think he must tell them.

See what others say over the weekend.

Darrenm325 · 28 October 2017 at 11:20AM

Thanks for your advice fatbelly
I don’t think I be invited for my roast dinner tomorrow put it that way

silvercar · 28 October 2017 at 3:06PM

As this happened 11 months before your bankruptcy there is an argument that you did not know you were insolvent, had no intention of going bankrupt and your decision to repay this money was not an intention to 'prefer' your dad.

This is the argument you must make with the Official Receiver. Gather your evidence. How likely was it 11 months before bankruptcy that you would need to actually go bankrupt?

debt_doctor · 28 October 2017 at 4:35PM

Hi,

The first letter is a fishing exercise. Clarke Wilmot send out a letter asking for the money back - and if they get it - they says thanks very much.
If they receive a reply that says I haven't got the money any more then the IS have to weigh up whether it is worth paying CW to pursue the case. Actually £5K was previously the threshold below which it was not considered viable to take the case forward past the original demand letter, but since CW got the recovery contract back from Moon Beever, they do recoveries on a no win no fee basis.
This means that the risk of being out of pocket has shifted from the IS to CW, so now CW have to weigh up the likely hood of recovering the money and getting their fee paid.

First response needs to be from dad saying that he doesn't have the money - or only has some of it. Repaying say, £1500 could well make the difference between recovery action or not, but in the first instance a letter stating that he doesn't have the money.

I don't know dad's circumstances - does he own a house? Does he have a high income?

Any letter should say that the money was lent and repaid in good faith, (possibly that bankruptcy was not being considered at the time) and that the money has been spent on normal household expenses.

If dad does not have much in the way of spare income it needs to be stated. In particular if dad claims any means tested benefits this should be stated.

The IS via CW will always hold the "we may take action through the court" above you (just like IPA's) but it always has to be viable.

Things not to do are to borrow money from people who charge a fortune and assault you if you don't pay. Does you dad really want you to do this?

Your dads credit rating cannot be affected by this unless it becomes the subject of a court judgement.

DD.

Debtor80 · 28 October 2017 at 8:01PM

Surely these Solitors are just trying it on, the father must just advise them "Without Prejidice" that the money was used to settle a loan shark debt, the OR was advised of same as a courtesy and full disclosure, but at the time the debtor had no idea they were going to be insolvent.

Would they not have to take Court action to get any liability of debt to the father?

fatbelly · 28 October 2017 at 8:19PM

Debtor80 wrote: »

Would they not have to take Court action to get any liability of debt to the father?

Yes, so they need lots of reasons why that would not work.

Darrenm325 · 29 October 2017 at 9:44AM

So is there any thing I can do or do I just have to leave it up to my dad to write the letters and sort it
I was honest with the or I never planned to go bankrucpt nearly a year ago and seems unfair that the money I owed my dad witch I have paid back to him he now has to pay to Clark an wilmot
My dad has made clear that any money he has to pay I will have to repay and tbh I don’t blame him

Darrenm325 · 30 October 2017 at 10:40AM

Is there any thing I can do to help Dad at all

Or wants money from family please help

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