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  • FIRST POST
    • tjl44
    • By tjl44 4th Oct 17, 11:19 PM
    • 1Posts
    • 0Thanks
    tjl44
    please help: repaid mum before filling bankruptcy
    • #1
    • 4th Oct 17, 11:19 PM
    please help: repaid mum before filling bankruptcy 4th Oct 17 at 11:19 PM
    Hi please can someone give me some advice, i have had to file for bankruptcy as owed over twenty thousand due to taking out a loan for an ex and my business failing. i sold my house to pay back my mum as her partner is mentally abusive and if he found out she had lent me ten thousand i am scared what he would do. i now understand this is a preference payment but i had no choice but to go bankrupt and to pay her first within a week of each other. what will happen?
    Thanks
Page 1
    • Flyright
    • By Flyright 5th Oct 17, 6:09 AM
    • 307 Posts
    • 170 Thanks
    Flyright
    • #2
    • 5th Oct 17, 6:09 AM
    • #2
    • 5th Oct 17, 6:09 AM
    This will legally have to be disclosed to the Official Receiver and they will take steps to recover the funds from your mum.
    • silvercar
    • By silvercar 5th Oct 17, 8:53 AM
    • 36,082 Posts
    • 151,746 Thanks
    silvercar
    • #3
    • 5th Oct 17, 8:53 AM
    • #3
    • 5th Oct 17, 8:53 AM
    Did your mum lend you the £10k as a deposit for the house? If so, you should search out any evidence of this. it may be that this loan is considered a secured payment due back on the sale of the property.
  • National Debtline
    • #4
    • 5th Oct 17, 11:37 AM
    • #4
    • 5th Oct 17, 11:37 AM
    Hi tjl44 and welcome to MSE,


    Unfortunately, this is a preference payment and the OR would likely recover this money from your mum. If it was given to help you buy your home then, as silvercar states, this could be an exception. In addition, if you got more than £10k equity from the house sale you would likely need to show the OR how the rest of the money was spent.


    Preference payments to family can be frowned upon so your mum will need to cooperate with any requests they make. You could try speaking to the OR office about the situation to see if there is any other potential solution.


    On a slightly separate note, if your mum is in an abusive relationship and this causes any concerns for you or her, then there are organisations that can help her, if she hasn't already sought help.


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • phillw
    • By phillw 5th Oct 17, 12:02 PM
    • 845 Posts
    • 466 Thanks
    phillw
    • #5
    • 5th Oct 17, 12:02 PM
    • #5
    • 5th Oct 17, 12:02 PM
    Did your mum lend you the £10k as a deposit for the house? If so, you should search out any evidence of this. it may be that this loan is considered a secured payment due back on the sale of the property.
    Originally posted by silvercar
    Don't you have to declare where the deposit money came from on the mortgage application? Will the OR check the application?

    Loans to family members without clear written agreements aren't usually legally enforceable, you've got your work cut out if you say that not only was it enforceable but it was also secured.
    Last edited by phillw; 05-10-2017 at 12:07 PM.
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