Will the OR have a problem with this?

im1dful

wherediditallgo wrote: »

Can you direct me to where it says that, please? I'm genuinely interested, because as I understand it, no-one can be made BR if they owe less than £750, so they wouldn't be able to do that with the OP's partner. They can penalise the OP for the payments they made, but they can't make someone repay money they say they no longer have - their finances aren't part of the BR petition, only the debtors. The penalty for non-return of the money is therefore imposed on the debtor, & the debtor alone. If someone who the OR decides is a preferential creditor can be forced to repay the money (rather than just required & asked to do so), it would be useful for us all to be aware of that in greater detail. Thanks.

In the OP's case, yes they can't go for bankruptcy (unless the cost then take it over the £750 mark, remember costs are provable!) but, as everyone on this board knows, bankruptcy is not the only debt recovery action. Also the recovery has to be in the interest of creditors, so if it will cost more to recover it than the amount owed, it is unlikely to happen but if the preference/TAUV is large it could happen.

The normal way for the OR to try to recover a preference is to write to the person and ask for it back. That is the easy way to get the money back.

Section 340(2) Insolvency Act 1986 for Preferences says "The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not given that preference.".It is virtually the same wording for TAUV but with Transaction instead of Preference. That means that for the OR (or any trustee) to properly recover a preference/TAUV they should apply to court for an order to restore the position to how it was (ie. an order for the money/property to be paid/given to the trustee).

Once there the is order the preferee/TAUVee can pay the money or, if they can't/won't, the trustee can enforce the order in what ever way is possible (CCJ/Bailiff/bankruptcy etc)

PixiePie

One more thing - do they have to give the money back to the OR in one lump sum?

If so, my OH will have no option but to go BR as he just doesn't have £2k sitting in his bank account, which seems stupid as then they get nothing, but both our lives are ruined (in that we can't rent anywhere as we have no-one to guarantee the rent and he has his own company so that would go down the plug as well and he wouldn't have an income then). I'm not arguing that £2k is a lot of money, but our rent is £1400 a month (we live in London) so when it comes to living expenses, its not really a stupid amount (and that would be for us as a family even though we aren't married but 'as if'). It was in Feb this year and I went BR at the end of August.

Many thanks for your help

Lizzibuff

radarjay wrote: »

Thanks for that post, it was really helpful. This whole thing is such a mindful.

We were living together as though married and the purchases on her card were for things for the household.

Your welcome - glad it was of use.

If you were living together as married and she bought things that you purhaps still own then technically you would have been paying her as if another debt and not as a partner.

And again going back to what i previously said i would have thought that if that was prior to your financially problems you would be ok.

Maybe worth getting other advice also - maybe pm Debt doctor from the CAB????

Good luck