Mum threatening to make me bankrupt

emweaver

Several years ago my mum lent me a large lump sum of money , to hide it as she was on benefits and already got done twice for having savings whilst on benefits. We had an agreement to repay her monthly into my bank account and save it up again to hide it for her. 18 months ago I gave her a lump some ,for half of what I borrowed off her.

Last year I got in a right mess fell behind on my payments to creditors and worked out I had 16k of debt so had to reduce her monthly payments.

Anyway a few months ago I received compensation for something awful that happened to me by my mums boyfriend which she basically admitted to knowing about and pushed to the back of her head. With the compensation I have paid of the majority of my credit cards, overdrafts etc and bought a new car as ours was dead. She told me not to pay the banks to pay her as I would only get back into debt again . I offered her a lump some towards the balance and continue monthly repayments which she wouldn't accept.

Today i got a letter from her solicitor demanding I pay her X amount within 7 days (shes claiming I owe her £1k more than I do). I do not have this amount to pay. The letter states if I don't pay within 7 days they will commence bankruptcy proceedings. I have no idea what to do from here and don't want to go bankrupt.

Dunroamin

As you seem to be in a position to report her for substantial benefit fraud, I'd say that you're holding all the aces!

purple.sarah

Does she have any written proof of the loan? I doubt it since she was committing benefit fraud and wouldn't have wanted to leave a paper trail! She can't do anything without evidence!

I would see this as a sign to cut ties with her TBH, she knew about and ignored the abuse and now she's using you to commit fraud and blackmailing you! She is not acting like a mother.

emweaver

No there is no paper trail just a message via facebook and text of me offering her a lump some. So should I deny I owe her anything , or dispute it and admit what I do owe and offer some sort of repayment?

Do I need to write to her solicitor or ignore it and see if he does apply for bankruptcy?

antrobus

emweaver wrote: »

Today i got a letter from her solicitor demanding I pay her X amount within 7 days (shes claiming I owe her £1k more than I do). I do not have this amount to pay. The letter states if I don't pay within 7 days they will commence bankruptcy proceedings. I have no idea what to do from here and don't want to go bankrupt.

The proper thing to do would be to go and take the letter to your own solicitor, and tell them the whole story behind it. They will:-

(a) reply on your behalf to your mum's solcitors, and no doubt refer them to the reply given in Arkell v Pressdram
(b) be able to best advise you what you should do regarding your involvment in your mum's scheme to defraud the DWP

Anubis_2

agreement to repay her monthly into my bank account and save it up again to hide it for her.

Do you mean you were paying regular amounts into her bank account? Or do you mean you were making payments in a separate bank account of your own to save it up for your mum?

I think you are holding the aces as Dunroamin states. I am unsure how long ago she was caught for fraud but now the rules have changed and a third time means she won't get benefits for quite a while.

I would approach a solicitor as stated. Be aware you may be incriminating yourself too, regarding the fraud, but it sound as though you may have been under pressure so your solicitor would be the one to best advise you.

NeverAgain_2

Waste of money using a solicitor.

You could ignore the letter, or reply simply saying your mother is a serial benefits fraudster and you will report her if you get any more threats.

To bankrupt you, she will need to prove the debt to the satisfaction of a court.

From what you say, she may not have enough documents to do that.

Proving the debt doesn't involve her having to acccount for where the money came from, but I would be surprised if you mother wanted to invite official attention to her finances.

Emmzi

I'd move abroad. Sounds like a charming family, the more distance the better!

NeverAgain_2

Emmzi wrote: »

I'd move abroad. Sounds like a charming family, the more distance the better!

That's an option, but the grass is not always greener, as this thread shows: https://forums.moneysavingexpert.com/discussion/3970533

nonnatus

Your mother sounds like a revolting character who repeatedly tried to defraud the benefit system and thinks nothing of sending the solicitors in after her daughter.
But then again, you knew what you were doing when you "hid" the money for her so she could continue to fraudulently claim benefits.
You'll both probably get into trouble over this whole saga, but if I were you, I'd cut that woman out of my life for good. You are not benefitting at all from such a toxic relationship.

mysterio_2

and it'll cost her upwards of £1000 + to make you bankrupt