paying family before going br

ashbash204

Hi all
as put on earlier thread 'failed iva..' I am looking at going bankrupt pretty soon. However, family and friends have supported me and could easily count as creditors ; if I sell my flat quickly enough, and realise the equity, how do I stand if I pay them first from that money, then go br owing whatever to the banks and cc accounts? Would they later have to prove they loaned me money (which they have)?

Another thing..I have just remembered that a charge was put on my flat by the IP, does that lapse now that the iva has failed and the original creditors are on the loose again?
I will find the paperwork for it but any clues would be helpful!

fermi

You can't pay family or friends off "preferentially" before you go bankrupt.

If you do, the OR/trustee will seek to recover the money from them so that it can go into your bankruptcy estate. There is the full backing of the law for them to be able to do this.

mclachlan4321

Dont do it !

one of the first things the OR will do is to look at the sale of your assets and where you spent the funds.

they will want to recover these assets from whoever you paid the money to. It is a big NO NO.

ashbash204

Ok thanks for those warnings, just a thought ...