Preferential payments?

wba31

mwarby wrote: »

Worth bearing in mind that had the vet work not been done (creating the debt), there would be no insurance payout. Its not likely you could have secured the payout and distributed the money to all creditors.

This is somewhat different to winning to most other windfalls(like winning money) and choosing to repay your friends then going DRO on commercial creditors. It's also different from the realizing your insolvent and choosing to stop paying creditors but repaying your mates/family instead

I'm of a similar opinion to other posters, I don't see it being a big issue due to intent and value

Having worked a number of cases like this i actually tend to disagree, however in this case it being only £190, it was hardly detrimental to the creditors.
My fear was a large sum (I once had to get £2000 back from pet insurance for vet bills for my dog) that the Insolvency Service wouldnt see it how we do. In my experience, they see sum of money, and a list of people who all want to be paid. common sense rarely comes into play with stuff like this where the son has clearly only paid the bill knowing that insurance will only pay out on a receipt being provided.

Knowing it's only £190, i cant see how it would be grounds for a DRO to be declined hence my questions in my first post.

wba31

alltaken wrote: »

You're arguing semantics that don't apply. Here's the key part:

.....you must have done it to protect that creditor in bankruptcy

.

This is a Debt Relief Order case.

wba31

DorisTrousers wrote: »

If it were me, I would interpret this as the vet being the creditor. That debt was paid by 3rd party funds, and the insurance payout went to the 3rd party.

It is still, technically, a preference but under the circumstances, and providing the DRO Unit was e mailed in advance with what has happened, I would be confident that there would be no issues with it.

From my experience the pet insurance only pays out once a paid vets bill receipt has been received, so the vet is no longer owed money, therefore no longer a creditor.

I agree that an email should be sent on submission to explain what happened, but being only £190 it should not be an issue

Johnsmith2016

£190 . Think you will be fine. Hardly a lottery win. You havent done anything. Deceptive, just a very normal things looking after a pet. I would be extremely surprised if they even bothered looking into this.