going to go bankrupt, can somebody help

[Summer]

hi, we sold our home approx 6 months ago, as we could not afford to keep borrowing money from family anymore to pay our bills, i paid back my mother all the money we had lent from the equity we had in our home, we are now still failing to pay all the bills and are going to go bankrupt, i am worried that the court will now go to my mother to get some of the money we gave back to her, can somebody help

[MelanieGiles]

Hi Summer and welcome to the forum

In my opinion, and of course I am just one of the experts on this forum, it appears that you have effected a preference to your mother in repaying her loan at the expense of your other creditors. How much did you pay back to your Mum, and how much do you owe to other creditors.

As Mum is an associate of yours in the eyes of insolvency law, a subsequent Trustee in bankrupty can trace these types of transactions within two years of the bankruptcy order. So you are possibly at risk here.

I would advise you to go to an insolvency experienced solicitor for more definitive advice with regard to this issue.


Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk