Preference Payment Question

Cash_Waster

A quick question that I need abit of advise with please.

The OH is BR as of February and we have had our OR interviews.

She recieved a decent redundancy at the beginning of Jan. With some of it, she paid her mum £2500 to clear a loan her mum took out for us in 2003 so that we could get married. Ever since we have paid her back £150 a month, and so knowing we would have no money we had to finish paying for it. I think the OR if fine with this as we could not leave a pensioner to pay another 2 years of the loan. He seen it coming out of the account every month for 5 years, even though this is technically a preference payment.

Now the hard thing is, my OH said she paid her dad back £2000 for years of support financially, with the odd £50 and £100 here. Now he is 80 years old and we dont really want him to be to aware of what has happened as he will only worry. The OR has wrote to him and the mother in law asking for confirmation of moneys paid? The official loan one should be ok, but how do we write a letter saying details of how and when he has lent us money?

I'm hoping the OR is sympathetic, but does anybody know of a way round this? He wants dates and when he has given us money, but we dont have any as its just been the odd few quid here and there. Is it just better to ask him for the cash back? This is probably our last hurdle. Any answers would be greatly appreciated as I'm unsure of what to say. You cant even say check his bank details as he is like many pensioners who like to deal in cash.

Has this happened to anyone else? You cant just let down your family can you? Cheers all

skylight

Okay - I will say it, as someone else will, but as it was all in cash, it wasn't worth mentioning in the first place. But whats done is done, so damage limitation!

When your OH spoke to the OR and mentioned this money, did she mention any dates?? As in the last time you paid any money back? I ask as you could state it was over a year ago the last payment to him and it covered several years prior to that?? You just want to keep it as far from your BR as possible (if you can), so that you can argue that you paid him the money whilst you were solvent and therefore able to, but then stopped paying him when you realised you could not afford to anymore. Then the OR should just let it be. (If its all in cash and no dates were mentioned, then it may be a case a small little white fibs).

Just make sure that her Dad is aware this letter is coming and that you will deal with it on his behalf - he is to do nothing until you tell him too! That way, you can draft a letter, he can read it and hopefully be happy with it and just sign and post it back.

The letter doesn't have to have accurate dates - just approximate ones going back over the years.

Hope it makes sense. I am not advocating "lying" here, just trying to keep your FIL out of it as much as possible. At the end of the day, we have all taken cash from relatives to help out - and paid it back when we can.

Cash_Waster

skylight wrote: »

Okay - I will say it, as someone else will, but as it was all in cash, it wasn't worth mentioning in the first place. But whats done is done, so damage limitation!

When your OH spoke to the OR and mentioned this money, did she mention any dates?? As in the last time you paid any money back? I ask as you could state it was over a year ago the last payment to him and it covered several years prior to that?? You just want to keep it as far from your BR as possible (if you can), so that you can argue that you paid him the money whilst you were solvent and therefore able to, but then stopped paying him when you realised you could not afford to anymore. Then the OR should just let it be. (If its all in cash and no dates were mentioned, then it may be a case a small little white fibs).

Just make sure that her Dad is aware this letter is coming and that you will deal with it on his behalf - he is to do nothing until you tell him too! That way, you can draft a letter, he can read it and hopefully be happy with it and just sign and post it back.

The letter doesn't have to have accurate dates - just approximate ones going back over the years.

Hope it makes sense. I am not advocating "lying" here, just trying to keep your FIL out of it as much as possible. At the end of the day, we have all taken cash from relatives to help out - and paid it back when we can.

Thanks, Exactly, damage limitation, basically she panic'd to explain away £9000 leaving the account since Dec. Its not lying, its the truth its just how to explain the £2000 cash to him. Would it just be easier to ask for it back and tell the reciever and hope for the best. The £2500 for the loan cant be reclaimed as she has paid off our wedding loan!

Yeah ho, looks like its tale between the legs and hope for the best.