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Are preferential payments taken into consideration within a period of time before an IVA start date as with a bankrupcy?
Many thanks


Hello i'm very new to this, would someone please tell me if I have to declare an interest in a property if the mortgage is in my name but the property belongs to my son. Also can someone please tell me if there is a rule such as with bankruptcy that under the insolvency act,section 340 you may not make payments within two years of the bankruptcy to associates which, includes parents which are re-payable to the official receiver for distribution amongst the creditors?

Hello Gazza

Within an IVA proposal you have to state whether, in the relevent periods prior to the date of the proposal, there have been payments of a preferential nature or transactions at an undervalue.

The reason for this is that an IVA proposal is supposed to set out why the offer that it contains is better than your bankruptcy and, were you to be made bankrupt,the overturning of such transactions might affect the outcome of your bankruptcy.

If there have been such transactions it does not necessarily mean that the creditors will reject the proposal, it all depends on how good the offer is taking in to account the earlier transactions.

As to the property issue, yes you will have to disclose the existance of the mortgage on your son's house and if you have wholly or partly funded the repayment of the mortgage it may well be concluded that you have a beneficial interest in the property that will need to be accounted for within the IVA.

Hope that helps.

Do you pay the mortgage, or does your son fund these payments? Why is the mortgage in your name?

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

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http://www.melaniegiles.com/ivaEnquiry.asp

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