Preferential payment?

Guy-Brush

Hello again. What seemed like a potentially straightforward personal BR seems to be getting more and more complicated the more I look into things and I am quite stressed with worry!

If I go bankrupt this month and the OR looks into my finances and sees that I made a £10k payment to my sister in law in November 2015, what will they think? This date is way before most of my current debts and I had no issues back then.

The payment was for her share in a classic vehicle which we co-owned. It was kept at my property so when I sold it, received the money from the buyer (bank transfer) and passed her share back. No paperwork as it was a private sale!

I just don't want it to get me into trouble even though it seems so long ago and totally irrelevant.

debt_doctor

Hi,
Just so that I understand - You didn't owe your SIL any money, so you weren't paying her back.
You SIS, sometime prior to Nov. 2015, made a joint investment in a classic car, then resold it and split the sale costs (or at least repaid SIL's investment)
So, no preference (as you didn't owe your SIL anything) - and providing that you didn't sell the vehicle for les than it's assumed value, then there is not a 'Transaction at undervalue' (TAU).


I see no issues - other than explaining what you have done with your share of the proceeds since Nov. 2015.


DD

Guy-Brush

Thanks, that puts my mind at rest. No, I didn't owe her any money, was simply returning her share.

My share was tiny - £1k - and we sold it for a profit of only £1k which she allowed me to keep as I had insured and maintained the vehicle.

debt_doctor

Then your total of £2k can easily (and probably was) be just spent on general expenses over the last 18 months.
DD

Guy-Brush

:beer:

In general, are they likely to delve that deeply into my old bank statements?

TheGardener

My OR went though my statements with a toothcomb - my OR asked for an explanation of an 18month old transaction to easy jet for about £500 but I was able to show her the corresponding payment from my MIL who asked me to buy her some tickets as she's not very internet savvy.
All the OR is doing is trying to get a feel for what went wrong and when - and to corroborate your own SoA

Guy-Brush

Eeek! Going to be a rocky ride then... I haven't done anything naughty as far as I know but trying to remember everything is going to be difficult, especially since I started a business and have all those costs to account for!

alltaken

I found it easier to look through my affairs first, rather than face any 'out of the blue' questions on a particular amount.

Anything I was unsure of I was honest about and said 'I do not know, but it's likely it could have been XXXXX'

TheGardener

Sorry - I didn't mean to spook you. I meant to say that they OR can ask for several years of bank statements but in my experience - a year or two is more usual.
I think you might be over stressing - just get your stuff together, go over it and then just be honest and compliant with the OR. The CC fraud thing - highly unlikely based on the fact I haven't seen anything on this board about that happening.
However you got to this place - you can't go back and change it now so just be open and the OR will lead the way.

luvchocolate

I have to agree with the above, I have read all your threads and seem to be getting worried about about what might happen.
You are at the stage you are at and that's the way it is, show the O.R everything they ask for and answer their questions honestly.

Then look at it as a fresh start and move forward.

Johnsmith2016

On balance yes they can and in some cases go through with a fine tooth comb. In my case he couldn't of been less bothered, as I lost my job and wasn't working had no assets he said he sees no point in delving into the things with no end result . Your unemployed aren't you? They are busy folk, I would think they will spend time investigating ones were they can claw back some money . In my case I had nothing so it was kinda pointless . He asked about some transactions going back a max of 6 months, tell the truth and if you don't know say so. It's not an interregation they just try get a feel for what went wrong. If you know your stuff e.g have most things prepared then it's a ten minute telephone interview like mine. Of course if your earning good money, have assets and some questionable transactions/ gambling they will no doubt look into further.