Few Questions about paying family money back

fermi

The operative word in the above is the "or".

http://www.statutelaw.gov.uk/content.aspx?LegType=All+Legislation&title=Insolvency&Year=1986&searchEnacted=0&extentMatchOnly=0&confersPower=0&blanketAmendment=0&sortAlpha=0&TYPE=QS&PageNumber=1&NavFrom=0&parentActiveTextDocId=2519933&ActiveTextDocId=2520404&filesize=7722

SouthCoast

they gifted us a deposit

Why are you repaying a gift?

Windsurf

Hi,

SC a gifted deposit is what it has to be called when you havent got the actual deposit yourself and its taken from the balance owing to the seller. The house was sold to us for £118,000 with a "gifted" deposit of £8000 to enable us to get a mortgage.

Anyhow Thanks all for the replys above but it's unclear if they will recover the money or not so looks like I will have to keep worrying until end of April when I speak to my OR.

If they do recover the money are they then treating my parents as a creditor and will they then have to include them in the bankruptcy as surley they cant have it both ways they are either a creditor or not? We can proove we owe them this money as we paid half back monthly after took the mortgage out so the evidence is on there in black and white?

They have also lent us £1200 back to help us pay overdrafts last month before we Knew we was going bankrupt, will this get deducted if they do recover the funds?

My parents are going to be well worried now as they dont earn great money and are just about to retire, Should I tell them now or wait until the OR decides as I dont want to worry them unnessacerally,

Thanks again anyone who has replied, I appreciate the help.

fermi

http://www.insolvency.gov.uk/freedomofinformation/technical/TechnicalManual/Ch25-36/Chapter31/part4A/Part%201/Part%201.htm#31.4A.17

31.4A.17 Recoveries where amount less than £5,000

As detailed in paragraph31.4A.7, Moon Beever will not accept instructions where the antecedent recovery is likely to be less than £5,000.

The following paragraphs (paragraphs 31.4A.18 to 31.4A.21) give guidance and advice for cases where it is not possible to instruct Moon Beever owing to the recoverable amount being below £5,000.

In most cases it will not be worth pursuing the matter through court action but an attempt should be made to secure a voluntary payment from the beneficiary of the transaction – that is without litigation or settlement.

31.4A.19 Antecedent recoveries - seeking repayment from a beneficiary

The official receiver should write to the individual or organisation involved in the antecedent transaction setting out the position and asking what arrangements they intend to make for repayment. If the reply sets out how they will repay all, or part, of the money owing, then the case can be passed to the RTLU for collection – but, of itself, this should not prevent a home office making a recovery for the benefit of creditors. Where part payment is offered and that is thought to be unreasonable, the home office/RTLU official receiver should be willing to compromise the debt where appropriate (obtaining the necessary sanction from Technical Section).

31.4A.20 Action where beneficiary unable or unwilling to repay

Where the individual or organisation benefiting from the antecedent transaction does not respond to the official receiver’s correspondence, refuses to repay or disputes the antecedent transaction, the official receiver should consider the merits of pursuing the matter and discontinue collection where recovery is unlikely (e.g. where the debtor is unable to pay and/or the amount involved is too small to warrant legal action for recovery) or inappropriate (e.g. where evidence suggests there was no intent to prefer or the debtor was not insolvent as a result of the transaction). In making a decision on the ability to repay the debt etc., the official receiver should consider all relevant information such as the beneficiary’s income and/or property ownership.

fermi

As said, each OR has to make a judgement call given the above guidance.

Windsurf

Thanks Fermi,

My Mind's a little at rest again as it looks like they wont recover the money. If they do I would automaticly be back in debt once discharged from bankruptcy and would have to start paying them back again which would not be the end of the world but I know that they would be upset about losing the money for another year or so.

Thanks again Fermi, your help is appreciated in this very difficult time for me and my OH.

Windsurf

Just had a thought, Before we sold our flat we was using the credit card to do it up to make it more attractive and also as I was off sick quite a bit before leaving my job we were putting everyday expensies and paying a few bills with the card which mounted up. When we got the equity (Dec) after I left my job we cleared the card with the equity. Will they approach MBNA for a repayment of this cash? We had no intention of them benifiting as we were not even considering bankruptcy then but we was setting up a DMP so reading above was effectivly insolvant but with a view to me getting another job after Xmas and continuing to pay our other debts as usuall. We were just paying the debt with the most interest off first.

I thought it was best to tell my parents about the risk of the money being reclaimed so I called just now and they were fine about it and also have offered to loan us the rest of the fees we need for the bankruptcy.

fermi

Windsurf wrote: »

I thought it was best to tell my parents about the risk of the money being reclaimed so I called just now and they were fine about it and also have offered to loan us the rest of the fees we need for the bankruptcy.

I know most parents are like that, but I just had to say how nice that is to hear.

You spend ages thinking about how they are going to react, and most of the time not only are your fears unfounded but they come out with a gesture like that. :T