Loan payment clawback?

wurzella

Hi guys, got another question.

I'm going bankrupt, my wife isn't. Just over 2 months ago we paid off the balance on a small loan in my wife's name with her bank, it was just under £3000. This was paid with my bonus and was part of my ongoing efforts to clear my debt. I paid this one rather than any of my own as it had a much lower balance so I could reduce my monthly outgoings by doing it.

Is the OR going to demand this money back from the bank? If so how wil that affect my wife's standing with the bank?


I'm up in court tomorrow, can't wait for that feeling of relief everyone says you get I have to thank everyone on here, this forum has been so much help.

fatou256

although i am no expert the OR may be interest the reason behind it and may ask why you havent located a payment pro-rata towards your creditor as technically you were not liable for this debt as it was in your wife name ( unless i am mistaken)

i dont know if the OR will ask for the money back but if the OR is a bit tight (lol) he may as well .... but if hse hasnt the money to pay it back well the OR may let her off ! ( this is my opinion only so take that into consideration)

regarding the bank account if it is a joint one it will be better that you close the account and open separate one or removig your name of your account ( if the account is not in debt) . as you will find that once you are declared BR you will loose all claim regarding your account unless the OR said he has no interest in it and there is 2 bank opening account for undischarged BR the co-op and barclays.

good luck in court tomorow wish you the best !

peachyprice

They won't ask the bank for it back, but they may ask your wife, as it's she who has had the benefit of you clearing her debt whilst not repaying your own.

wurzella

Thanks guys

We do have a joint account which I know will be closed but my wife has her own current account as well in the same bank. Are the bank likely to give her a hard time because of my bankruptcy?

I've only just realised, that money I paid off her loan with I'll need to put in my SOA as a gift right?