Preferential Payment Sister Next Account

purplestrawberry

Thank you so much for your help

So would I still be able to go bankrupt?

I have read about BRO/U and am ok with the extended restrictions.

What about the few odd monthly payments going to the account also, They are not every month as I sometimes paid from my husbands account?

Would they take it from her Next Account or contact her directly?

Would her account remain open so my daughter could pay it off?

debt_doctor

Your sisters account with Next would not feature in your bankruptcy. It is the 'sub agreement' that exists between you and your sister that might come under scrutiny.
IF a preference was formally found, the IS would write to your sister asking her to repay the money. I would not see any justification to ask for the other regular payments back as they were normal payments - you can repay family back over time at the agreed rate - its just extra or excessive payments that bring a potential preference. They certainly would not be able to take it from her Next account.

The Next account would remain open. (its your sisters - not yours)

All that needs to be decided by the adjudicator is; Is the applicant insolvent - there are no other pre-conditions for bankruptcy, so this issue will not stop you from becoming bankrupt.

DD

purplestrawberry

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debt_doctor

purplestrawberry wrote: »

Odd monthly = the same figure, just not every month spread over the year.

Thats fine.

purplestrawberry

Thank you

I read on the forum there was a section in the forms for preferential payment, should I list just this payment or leave it out?

debt_doctor

You certainly need to list your sister as a creditor (agreements between individuals do not need to be in writing) - any family debt will bring questions from the examiner.

Only you can decide whether you feel it was a preference and then notify accordingly. (think of the definition I gave you earlier).

DD

purplestrawberry

I honestly didn't think of it as a preference,

So what should I say to the OR when I talk to them, are they likely to believe me when I am going to go bankrupt soon after the payment was made, even though that was the wake up call for me?

System

Lets put it this way, you won't be the first and you won't be the last person who has ever done that and had such a thing as a wake up call.