Preferential payment 21 April 2020 at 7:39PM in Bankruptcy & living with it 7 replies 211 views

hugh6989

Evening people how does the official receiver get preferential payments back and how long does it normally take for them to sort it been bankrupt 8 weeks now and heard nothing stay safe

mwarby

It would depend on who they are made, the amounts involved and wider circumstances, thus bit of insolvency manual covers the topic https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch25-36/Chapter31/part4A/Ch31-4A%20Intro.htm it reads to me that they outsource the collection of it and it could go to court

hugh6989

It was 4k to a family member a few weeks before I went bankrupt  I owe them nearly 10k  I think if I asked they would give it back (hopefully) thank you for the info

Minkym00

The Insolvency Service will instruct a firm of solicitors to take action to recover the asset. It’ll take months in all likelihood. 

hugh6989

If my family agree to pay it back will it go to court? 

TripleH

I doubt it. If the Insolvency Service can get the money back without court, why would they go to that extra expense? If they did, one could argue they are not acting in the best interest of all affected parties.

fatbelly

If the OR  agrees it was a preferential payment they will write to ask for payment. If payment is then made, that's the end of it.

hugh6989

Thanks  for the replys