how far back can OR go?

OAP_Annie

I was declared br on 7th May this year. In 2005 I repaid my daughter £11000 which she had lent me while I was struggling with my husband's death. I paidthe money back by Dec.2005 when I was not in my opinion insolvent as I had funds in the bank at that time and was up to date with all payments and had no arrears any where. However the OR has been i ntouch with my daughter and told her that I was insolvent at the time I repaid her and how is she goingto pay back the £11000. My daughter does not have this money anymore and when I repaid her I did not consider myself insolvent and I paid her back in good faith, my daughter is terrified as she has no way of repaying this money. Can the OR do this?What happens re my daughter, will it affect her credit rating and how can she pay back what she no longer had. I would never have repaid her had I know this would happen, but at that time BR was the furthest thing from my mind. I did not really start having money problems until about six months prior to going BR. Have tried to contact OR but she is on leave until tomorrow and she is going to ring me back tomorrow morning (Friday)

Any help desperately required.

Thanks

k2nga

I got to be honest and say i dont know how this works but i am guessing as you owed the money and were repaying it there should not be a problem although i suppose the OR could as you to prove you borrowed the money to repay in the first place but i am guessing your bank account statements would reflect this and if this is the case i cannot see why this would not be like repaying a loan to a bank.

Like i say no expert but i am sure someone else on here is and will be able to help.

shadowdragon

to add onto this, if you were paying other creditors back at the time, ask the OR if they are going to chase other creditors for the money you paid to them at the same time (banks, mortgage companies ect)???

DEBT_23

umm would be good to know the outcome of this...

i go BR on 6th aug and i owe £2500 to a ex and i own my dad i have been paying them back each month. couldnt afford to live if i get a IPA taking half of my surplus with this debt also.

Summer1969

I had my OR interview last week. As I told him I had paid off a couple of loans for my fiancee in the past 3 years, he wants off me details of what I have paid off for him. He told me that OH will have to pay back what I lent him as it is seen as a gift from me, but they do look at whether or not that person can afford to, so its not a given. So not sure what will happen with your circumstances. I have sent off for the past 5 years Bank statements so I can provide the information.

JCS1

Think it's 2 years for 'normal' creditors where they think might be a preference payment, and 5 years for relatives, would need to check the technical manual though to confirm.

thenumptys

Really interested to hear your result from OR, please update us, We also had loans from family and friends that were paid back last year

thenumptys

for anybody interested in this thread I have spoken to the insolvency enquiry line this morning and they have confirmed that paymnet to family members will be seen as preferential, even though I explained that at that point I was still paying back other creditors too. The OR will look at what lead to the insolvency, and WILL ask for money back from family menbers and creditors, to go into the pot to then pay them all back???!!!

shadowdragon

That sucks for family members, it really does. I suppose it has to be that way so that you dont go stashing lots of moola with family members ect prior to BC then getting it back afterwards. Very compicated and a minefield. Although what would the OR do if say you payed back your sister £xxx, and the OR asks for it back and they dont have any £££ to pay with??

peachyprice

Hi Numpty,

I'm sure I read something by Fermi or Debt Doctor, or someone else equally knowledgeable that said they can only ask for the money back, not demand it, if your family members say they don't have it, they can't make them pay it back.

GettingHopeful

I am very concerned about this question - I had a legacy in 2003 just under the 5 years and made two gifts of £2000 each to people who had known my aunt well and had supported me in connection with problems with her in her old age, but hadn't been directly named in the will - my husband who I was living apart from and my daughter. So far there has been no query from the OR about these, and as far as my understanding is they have gone back 2 years on statements.

I will let this board know the result. I don't think either are in a position to repay the money.


PS just seen this is about loans, not gifts and I need to check exact dates anyway