Going bankrupt but have my dad money

davetrg

It looks like bankruptcy is my only option. I am a landlord with multiple properties. Rent isn't covering mortgages and in I am in negative equity and a lot of personal debt. Things started going wrong 12 months ago after my wife's cancer diagnoses and several properties simultaneously becoming empty that needed a lot of work to rent them out again.

I gave my father £15,000 2 years 1 month ago. I was completely solvent at the time. It was from the sale of a house on the open market. I made £25,000 profit in total and the £15,000 was to repay him for money leant to me over the previous year for my wedding and a few other bits. I genuinely was solvent at the time.

Will the OR ask for this money back?

Thanks

fatbelly

You're probably OK. There would have to have been the intention to put your father in a better position prior to your insolvency. That period is normally 6 months but where the beneficiary of the preference is a connected party, the time period is extended to two years prior to the onset of insolvency or the presentation of the bankruptcy petition.

Minkym00

The OR will review this payment from 2 angles - a TAU or a preference. For it to be preference you will need to prove that it was a debt owed. Can you evidence that he gave you the money for the wedding etc. Was there a written agreement? If

If not, it could be viewed as a gift which was a transaction at under value. A TAU to a connected party up to 5 years can be challenged and you don’t have to have been solvent a the time of the transaction. See section 13 onwards...

https://www.insolvencydirect.bis.gov.uk/casehelpmanual/A/AntecedentRecoveries.htm#13

Can you prove it was in repayment of a debt?