will the or seek undervalue transactions even if the person flees before BR?

monkfish_3

does anyone know if the OR will look to recover undervalue transactions to 3rd parties if the person has fled before they are forced BR? i understand from all the useful posts on here that as they have fled the country the BR order is unenforceable and they receive a indeterminate BR in their absence. Will the OR investigate any undervalue transactions immediately or on their return? This is really really important to me because i think my friend has really put me in it so to speak.

any advice much appreciated

maxmycardagain

the OR has limired powers, in "normal" cases they can seem pretty omnipotent but thats when your a pipsqueak BR, sat here in the UK, with anything to protect, maybe a house/car, etc.

if your sat in Bulgaria with a stash of the local currency the OR is a eunuch (ouch)

i think your unlikely to see the OR bring interpol into this...

fiveyearplan

What was the item you think was undervalued and by how much? Did the person have a debtor's petition or were they made bankrupt by a creditor? It seems a silly thing to flee if they made themselves bankrupt.

skylight

Max did mention "unlikely".

But the OR could, if they had a really p'eed off little bee in their bonnet, drag the sorry bottom back to the UK. Depends on how jobsworthy the OR is, or the type of case you are talking about. Depending on what you mean by "undervalued" and how this may be construed in law (fraud etc) will also have a bearing on matters. In which case, by trying to run off could make matters a lot worse.

There is nothing wrong in putting your hands up in the UK, declaring ignorance and being slapped at worst, with a BRU/O rather than running off and risking it. Depends on how much you like sunshine I guess!

maxmycardagain

so the OR is gonna have a BR extradited?

i doubt it very much, have you any idea what that costs?

and sunshine is very very nice....

monkfish_3

I think i've not made it clear, i'm not really interested what happens to her but what happens to anyone who she has disposed her assets to, here is the story.

I am, and my girlfriend is about to become phd students, and have both won scholarships which give us an annual stipend of around £14000 each (this is tax free).

A lifelong friend of mine recently remortgaged their house and gave us £102500 which we put with our savings of £30000 to buy a house outright. We did this instead of getting a mortgage ourselves because at the time my partner was in between courses and had no income, also it meant we got the house cheaper because there was no mortgage needed (it was listed at £145000). We were planning on paying our friend the equivalent of the mortgage payments.

We moved in last week and were the happiest we have ever been starting painting etc.

Now completely out of the blue it looks like our friend has had an investment go deeply wrong and reckons she will go bankrupt! She hasn't asked for the money back, what will the OR do?
I've checked and no lender will remortgage the house until we've been living there 6 months so we won't be able to release the money (if at all) until that time. My friend will owe this money from the end of october, how long will it take for her to be forced br?

skylight

Seek Legal advice ASAP.

What contract do you have over repaying the money? Is she on the deeds/mortgage etc?

monkfish_3

no contract just agreed to pay her the monthly mortgage repayments, she is not on the deeds

ndl have told me that the OR will seek this money back from me, and if they can't get it force me BR or sell the house to recover the funds

peachyprice

That's an awful lot of money for someone to 'give' you!

The OR can do either of 2 things, he can undo the house purchase to put your friend back in the same financial position she was before she gave you the money, and then take it for creditors. Although I don't know whether this is possible as the house isn't in her name. I think you need to seek legal advice ASAP on this as you possibly stand to lose your home.

Or they can ask you for the money, which if you haven't got, they can't make you pay.

skylight

Thats a good thing. Worse case scenario you can claim she gave you the money and not lent it. She has no claim on the house then, but perhaps the money.

If she goes BR, then her OR is in his right to demand the money back - if his investigations lead him in that direction. Whats a bit unknown here, is that although the OR has a legal right to demand the money (and can continue to) we are unsure as to whether the OR has a legal right to actually get the money - take you to court etc. The OR cannot place you into debt over it, but this is the point then where you need to take legal advice.

Especially as you have no contract with her stating the money is owed, thats a bit better position to be in than if you did.

monkfish_3

but the ndl and insolvency helpline said that once she was br (in absence or otherwise) that the transaction would be discovered to my account, then my account investigated and see a large sum to the solictors for the house. The OR would then petition for my banktuptcy or put a charge on the house, to recover the money. I honestly believe my friend gave us this money before she knew of this bad turn of events for her. we haven't paid her the first mortgage payment yet, we were going to do this by a monthly standing order to her account, shall we not do this now?