CCJ is preferential treatment?

alltaken

In the last two years, if I have made a payment to a CCJ debt via monthly agreement with the creditor, would this be classed as preferential treatment, or do CCJ's get classed as something essential to pay over other debt?

Thanks

debt_doctor

Hi,


You would not upset the Insolvency Service by paying off a CCJ by instalments.
In any preference, a payment must be made ' other than in the ordinary course of business' AND with a view (intent) to improve that creditors position in bankruptcy.


It was arranged payment over time - so not other than in the ordinary course of business AND I would think you did it to avoid enforcement action - NOT to improve the creditors position.


Nothing to worry out.


DD

alltaken

Thanks so much!

Now, a predicament. If I put on my form that I have not given preferential treatment, ticked the box as no, should I potentially inform the OR at my interview of what may have happened? Or wait until any question arises in the future.

I'm much calmer with the advice you have given. Such a helpful forum.

alltaken

I would think you did it to avoid enforcement action - NOT to improve the creditors position.



What if a creditor without a CCJ sent a letter?

I get the argument that could be made but surely you could use the argument I paid creditor A over B because they sent me a letter claiming they might visit me?

I would hope a CCJ would be more understandable to the OR,

debt_doctor

To be guilty of the bankruptcy offence of preference it must be PROVEN that you made over and above payments to a creditor with DELIBERATE intent to lessen the impact of bankruptcy for that creditor.
The preference rule is to catch out those who pay friends and family back, usually just before bankruptcy, in a lump sum, because they do it deliberately to improve the family members position.
Incidentally, it's perfectly ok to pay a family member back 'at the agreed rate' ie borrow £1000 off mum, agreed rate £50 per month over 20 months - that's fine because it is not 'other than in the ordinary course of business'.


I generally find that bankrupts (and even some advisers) suffer from 'preference hysteria!
I see nothing for you to bother about.
DD