Loan from Dad!

CG77

Hi all,

My Dad lent us some money last Jan. We made repayments all last year and into this year. This Jan, he gave us some money to help us out with my maternity leave. At that point he reduced our payments slightly cos he felt sorry for us basically! THEN in July we looked at our finances and decided we'd have to go BR. We spoke to him and explained. There were 3 months left to pay and he said we didn't need to make any more payments, so we haven't. We stopped paying him at the same time as the other creditors.

My question is, as nothing is owing to him now, do we still have to list him as a creditor?? I'm hoping not, cos we don't owe him anything.

Any ideas please?

Thanks in advance!

CG. x

kgreen84

if you don't owe anything to him how can he be a creditor?

My answer would be no especially as he is a family member anyway

CG77

Thanks kgreen!

That was the answer we were hoping for! Can anyone else confirm?

Thanks again,

CG. x

dickoa

Does your dad fancy giving me a loan sounds like a nicve guy with parents like that youll be ok

betterlatethannever

He's not a creditor so as KG said, you'll be ok.

Are there any obvious payments to him in the past though? such as DDs or a large amount going out each month to pay him off? You may have to explain that to the OR.

CG77

Thanks BLTN,

Yeah, there are monthly payments to him on the statements till June this year. It was £148 per month. Hopefully there won't be a problem if I explain what I've explained here?

What do you think?

CG. x

PS. Dickoa he's a star, but I think we're pushing the bounds of his generosity now as he's also had to be our guarantor for the rented house! I just hope the OR doesn't ask us to buy our number plate back or we'll be going to him cap-in-hand again...!!

betterlatethannever

I really think you'll be fine, but be ready to answer the question if you get an OR thats noticed the payments and questions them. He might wonder if you favoured a creditor, but by saying that your father said to stop payments while you were struggling, then you should be fine.
The above is a 'worse case scenario'

I'd had a Next catalogue that was paid off a few months before BR - only about 3 months before and there was v little owing on it. The OR never questioned this.

CG77

Thanks again BLTN.

I'm having a blonde moment, but how would it look as if we've favoured a creditor?

Thank you for taking the time to reply.

CG. x

betterlatethannever

Umm, it wouldn't look good if you were aware that you were going Br at the time, or if you were clearly insolvent.
The OR can 'try' to make the creditor pay the money back. I say try as in most cases the creditor has already 'disposed' of the money paid to them.:rolleyes:

I really wouldn't worry too much. As i said, that is worse case stuff. If your prepared for it, then it will help you to explain things properly.
Always best to be prepared

CG77

Thanks again BLTN. I still don't understand though (sorry!! my mind's mush with all this!!)

I didn't make any more payments to him than I did to anyone else. When I stopped paying the other creditors, I stopped paying him too. The only difference is, he's said he doesn't want any more payments, whilst the others are still chasing desperately! ;-)

Am I being dim? I really don't see how this could be favouring him over anyone else...

CG. x

PS. Sorry to be a pain!

betterlatethannever

In that case you'll be fine.
What i was trying to get at is, the Or may see payments going out on a regular basis and question them and you need to be prepared to answer the question, truthfully.
The truth is, you've done nothing wrong.. and your not being a pain.:rolleyes: