Insolvency Service demand

siobeau

In March 05 my daughter lost her job and was unable due to unique circumstances to claim any money her position was therefore destitute. Knowing that she would be in a position to repay me on the transfer of her joint property to sole ownership by her ex husband i agreed to lend her money for living and also for the minimum repayments of her credit card and loan debts.

In order to lend her this money i had to get an overdraft this amount was repaid by her at the end of june o5. My daughter due to mounting debt decided to file for bankrupcy in march 06. It was disclosed to the insolvency service that i had received payment of her debt to me, i was subsequently asked to return this to them so that it could be divided between all her creditors.

I have appealed against this decision on moral grounds stating that i cannot be compared with a credit card loan company who lent her money on the basis of receiving a high return in interest, that i had leent her the money on the understanding that i needed it back to repay the overdraft i had taken out.

The insolvency service have insisted i repay the amount pf £1875.00 or else they will take me to court. I have the money due to the sale of my own property in March 06, however i have no income as i am unemployed and living off the ever diminishing capital.

If anyone has had a similar experience or is able to give some advice i would be grateful.

GirlRacer_2

Hi Siobeau,

Sorry I can't help you with this one, but I'll bump it back to the front page in the hope that someone will be along later this morning to help you.
Good luck x

shameless-about-money

Unfortunately the Insolvency Service does have the power to requisition the money.

However, if I were you I would let the IS take you to Court for the simple reason that it would allow you to put your point of view and to explain your own circumstances to the Judge.

Don't give in to bullying tactics.

makingendsmeet_2

Hi

You would have been better posting this on the Bankruptcy forum as you would have got a better response.

From what I understand the OR is within his rights to claim the money back from you as your daughter is favouring an individual creditor, all be it her father.

Look at it from another angle. If your daughter owed you 10 Grand and owed another family friend 10 grand, then she went down to the bank and got a 10 grand loan and paid it all to the family friend and you nothing, then 1 week later declared bankruptcy. You would not be at all happy would you??? And be telling the OR she favoured one creditor. If I were you as its your daughter I would put it down to experience and let the OR have the money. I'm sure if you don't have it all at once you could reach some sort of agreement with him/her.

shameless-about-money

The folks from the br board do read this too!

I disagree totally - the debt was repaid nine months prior to the daughter going bankrupt, not a couple of weeks before.

By going to Court he gets to put his side of the story.

If the Judge decides that the money must be given to the IS a suitable sum would be agreed, rather than having to pay it all in one go.

makingendsmeet_2

Yeah go to court by all means... You could of course declare yourself bankrupt then the OR couldn't favour himself as a creditor. I pretty sure though that the OR's fess come from your estate before a creditor gets a penny. Hence the demand for the money in the 1st place.

siobeau

have reposted this to main bankruptcy board. thankyou all for replies