Going bankrupt but have my dad money

davetrg · 4 December 2019 at 4:57PM

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 · 4 December 2019 at 6:23PM

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 · 5 December 2019 at 9:15PM

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?

Going bankrupt but have my dad money

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