Consequences of hiding money from receivers

sticky23

I'm after a bit of advice on behalf of my mother in law, who is currently being taken to court by an ex-partner.

He moved into her house early on in the relationship - didn't contribute much to the running of the house on a regular basis, as far as I can gather, but at some point he gave her a largish amount of money to pay off her mortgage (approx. £5000). The reason he did this, was because he was going through bankruptcy, and wanted to hide the money from the receivers. (We never knew any of this by the way). This money went through a member of his family, so my mother-in-law did not do anything illegal (and at the time I don't think she knew it was dodgy).

Fast forward five years, the relationship has ended. She had to go to women's aid, and call the police to get him to leave her house. He is now suing her for part of the value of the house, due to his contribution to the mortgage.

So basically he wants to stand up in court, and say that the money, even though it was channeled through a family member, was definitely his. My understanding is that he has committed a criminal offence, for which he could go to jail, by hiding this money. Am I correct? We obviously want to avoid a lengthy court case, so are trying to ascertain how likely he is to take it all the way.

Thanks in advance.

debt_doctor

Hi,
Well now,

He paid £5k towards a mortgage to 'lose some money' that would have been an asset in BR. Well that is indeed a criminal offence.
Seems like your MIL had no idea he was BR, so what was the reason given to MIL for the £5k payment?
With what you say, under insolvency law, the worst that could happen is that the OR could ask for the £5k back as a transaction at undervalue - giving away £5k for free. Normally there is a 5 year time limit on such claims, but those that include deliberate fraud have no such time limit.
Good news for innocent MIL is that the IS solictiors Moon Beever are not instructed unless the total gain to the BR estate (including their costs) is £5k.
So IS say to MIL - Give us £5k - MIL says I aint got it - will probably result in no further action.
I'd be tempted to completely bluff it out, say he was liable to arrest and would not inccur any legal costs my self.

DD

sticky23

Thanks, Debt doctor

I'm not sure what reason was given to MIL, other than he was moving in, and wanted to help her out - she was struggling financially then (as now).

I will check, but I have a feeling that the amount was nearer the six grand mark. Does that change your advice?

I'm inclined to call his bluff as well. However he is a nasty piece of work, who's been to prison three times before, so who's to say he wouldn't be willing to do a forth stretch to spite MIL?

Rylynn

sticky23 wrote: »

Thanks, Debt doctor

I'm not sure what reason was given to MIL, other than he was moving in, and wanted to help her out - she was struggling financially then (as now).

I will check, but I have a feeling that the amount was nearer the six grand mark. Does that change your advice?

I'm inclined to call his bluff as well. However he is a nasty piece of work, who's been to prison three times before, so who's to say he wouldn't be willing to do a forth stretch to spite MIL?

Well he does not sound like a very nice guy, but do you think he would spite her and chance going back inside. Lets hope not as I would call his bluff as well.

RL

whitewing

If I read this correctly, a member of the ex-partner's family gave your MIL approx £6 grand to pay off her mortgage and she didn't question why?

Rylynn

whitewing wrote: »

If I read this correctly, a member of the ex-partner's family gave your MIL approx £6 grand to pay off her mortgage and she didn't question why?

Well if he was still living there happily which I gathered he was why would you question it?

sticky23

whitewing wrote: »

If I read this correctly, a member of the ex-partner's family gave your MIL approx £6 grand to pay off her mortgage and she didn't question why?

I'm afraid she's of the generation of women who leave all financial decisions to their partner, and don't question it. Stupid, I know, but it has obviously come back to haunt her now.

sticky23

How likely is it that he would go to jail for this? We have a letter from his solicitor claiming that the money is his. I don't want to get him thrown in jail, I just want him to back down from suing MIL.

arcon5

Do you know which office his official receiver was at? If so contact them and tell them. I believe if a court rules she owes him the money then the money actually goes to the receivers office as it was an asset that should have been for the benefit his creditors.

The receiver may also be able to intervene in any court action if she agrees she owes him the money. And perhaps may accept an offer of a lower amount in full settlement.

darren_clarke

tell her, to say it was a gift, from the other person and she didnt know it was from him, if he says he wants it back, say take me to court

darren_clarke

how long between paying off the mortgage and going BR