Help, unfair OR (I think)

jim_b_4

Hi All,

I need some advice, I went bankrupt in June and have had my interview. A few of my debts were to my parents which I paid back when I got a consolidation loan, I also paid all my other debts off. Being stupid and through various other reasons, I went back into my overdraft and ccards.

This is the point I went BR.

During the interview the examiner asked for my parents addresses as she said "I will need to confirm with them that you did pay them back" just to make sure this wasn't a lie (or something like that). I clearly asked if that was just it, because I don't want to have to put my parents under any uneccessary worry, she confirmed.

Yesterday they received a letter from the examiner basically demanding they pay the money I paid them back as it's seen as a preferential payment. They're now sick with worry.

Thing is, they were paid back at the same time all the other creditors were paid back so how did I pay them as a priority over the other creditors? and I wonder if they are sending the same letter to the creditors I also paid back at the same time.

I can see why they would assume is preferential as it's family, but I have been completely honest about everything and have not lied one bit, plus all other debts were paid off at the same time.

Can they demand monies like that off my parents? they certainly haven't got the money to give.

They also took my bicycle without being given time to prove that actually my company paid 80% of it, rather than go through the cycle2work scheme.

It's my responsibility and my bankruptcy, they shouldn't be dragging my parents into it, unfairly in my eyes. Is it unfair though?

Please, your advice is needed.

Thanks,
A worried Jim

CG77

Hi Jim,

As far as I'm aware, they can ask your parents for the money (although from what you're saying I don't understand how they see it as preferential either), but if your parents don't have it, there's nothing they can do.

As I said it's just as far as I'm aware, but I'm sure someone will confirm this (or put me right) very soon.

Try not to worry, although I know all to well how hard that is.

CG. x

jim_b_4

Thanks CG,

Yeah I do honestly believe it doesn't fall under the 'preferential payments', because, I paid them back at the same time I paid back the other creditors in full.

Now you mentioned, not to worry, if they don't have it there is nothing they can do, I feel better.

I guess I just needed to know if they could force my parents to pay?

Jim

philnicandamy

it really is classed as preferential.....BUT put everything down in writing & explain that your parents simply dont have the cash to pay back address it to the OR at your office & see what happens

if they dont have the cash they cant pay back...simples

Broken_hearted

Sadly they will go after your parents. Pretty sure the can not force them unless they have the means to pay.

jim_b_4

Thank you for the responses.

I have sent the letter to them, just have to wait for their response. I have also advised my parents to respond to them detailing why this was paid to them and that they simply don't have to cash to hand over.

I'll just have to reassure them that nothing will happen to them. They have it in their head that someone will be banging at their door demanding the money.

Broken_hearted

If they have assets could the debt be secured on them? I would find out so there are no nasty suprises in future. Good luck to them as they have done nothing wrong.

jim_b_4

Hi Broken Hearted,

The only assets they have I guess is the car, there is no equity in their mortgage.

I would contest anything like this all the way and would rather go back to court to contest this, purely because, it's my bankruptcy, my responsibility, nothing to do with them anymore..and I would encourage the OR to hound the creditors I paid off at the same time.

Also, the amount I am paying with the IPA as well as the tax that is being paid towards it over 3 years is paying off a few thousand more than I actually owe, if my parents did pay them (which they physically can't) then they would be overpaid by £10k, I assume that extra money would go straight to the OR?

Maybe I am being totally Naive with my thought process above which I wouldn't put it past me :-) but I will protect my parents no matter what, even if it means contesting it all the way.

Broken_hearted

If they have nothing tellthe OR to go jump.Politely of course.

jim_b_4

Thanks Broken Hearted,

I will definitely be doing that (in the politest possible way).

I will ask my parents to respond detailing they have no money to give.

liquidbutindebt

Jim,

They took your bicycle!! Why on earth were they interested in that? Surely there's hardly any value for them there. Which court/OR is this!?

Cheers,

LBID