Official Receiver Advice required

Cooking_on_Gas

Hi

My Step Father is currently going through the process of declaring himself bankrupt.

I lent him £40,000 about 18 months ago to clear some debts, service others and maintain some standard of life for my mother until a house sale went through which would release an amount of equity.

The sale of the house did go through but basically there wasn't enough money to repay me the whole amount, however, he did repay £10,000.

Since paying this money back he has decided that insolvency is the only option. He was completely honest with the OR about the £10,000 but now the OR receiver has written to me stating that I have been made a preference under section 340 of the bankruptcy act in in priciple I should pay the money back so all creditors can be treated equally.

The other creditors are credit card companies and a bank who make millions from us all and unlike me make provision for bad debts!

I need to go back to the OR with comments and I was looking for some advice if anyone has any for what to say.

RAS

Hi Cooking

Can you post this over on the bankruptcy sub board as that is where you will get the help you need.

Cooking_on_Gas

Have done - my apologies.