preferred creditor - Bankruptcy

[springwater]

hi, wondering if anyone can help,

I went bankrupt back in 2012, I had a property company which sadly went under which resulted in bankruptcy.

However, my father in law worked for me doing renovation and maintenance jobs on the properties (in 2010 and 2011) and he has received a letter today asking him to repay the money he was paid by me during that period.

He has the invoices, all the payment were itemised and completely legitimate so he's obviously distraught that he may have to pay the money back (over £16k in total).


anyone got any advice on what to do? i'm guessing a solicitor will charge a pretty penny to sort this out for him.


any help greatly appreciated.

[springwater]

anyone?

[Crazy council]

Hi, with it being easter weekend, some of the posters that fully understand them processes may not log on till next week, if it hasent been answer by monday give it a bump.

[springwater]

hi, thanks for letting me know, appreciated.

**bump**

[Amethyst]

The company went under in 2012 and the work was undertaken in 2010 and 2011 ? The payments weren't made after the bankruptcy process started?

Was this all above board ( ie the work was actually undertaken and a fair price charged, invoiced and put through the books ? )

He has the invoices, all the payment were itemised and completely legitimate

Seems so from what you have said so realy it should be a case of providing that evidence to the OR.

It may be as he is a family member the OR are looking at it as a way of removing money from the company prior to bankruptcy, so he ( and you ) will need to evidence that the work was bonafide. Did your FIL declare it in his tax returns etc ? Any issues with the work ?

It might help to see the actual wording of the letter, who it is from, what grounds they are asking for it to be repaid etc.

[springwater]

hi, thanks for letting me know, appreciated.

**bump**

hi there, thanks so much for the reply.

yes, the payments were made in 2010 and 2011, bankruptcy was may 31st 2012.

i've spoken to a solicitor today who says they can trace back up to two years prior to bankruptcy date if they felt insolvency was prior to the date of bankruptcy (no idea how they work that out but there you go).

it's 100% legit and all above board. he carried work out for us, with invoices, at a fair price and was paid (he was employed for a period so got a set wage, and then went self employed and was used as a sub contractor, they're claiming both wages and sub contractor invoices back).

he declared it all in tax returns and no issues with the work at all.

he doesn't have his contract of employment anymore (but guessing HMRC will provide him with a p60 or whatever from that time??), but he does have the invoices still, so his plan is to reply with as much proof as he can get.

a solicitor has told us they want £500 (to begin with!) to challenge it, £500 we don't have, so we'll have to do this ourselves. I was thinking of him getting a sworn declaration on this, as well as sending a strongly worded letter with as much proof as we can get (invoices and hopefully something from HMRC) in the hope they back down. would you advise this?

it stinks of them having 'one last go' before the 6 years is up where they can make a claim (its up on may 31st) but it's still very stressful, thought this was behind us!

any help or advice is hugely appreciated.

[Amethyst]

Would you be able to post a copy of the letter he received ? ( suitably redacted )

[springwater]

Would you be able to post a copy of the letter he received ? ( suitably redacted )

hi, yes, i'll do my best, i'm really not sure how to do that but let me get googling and find a way.

[Amethyst]

You could type it out, or if it's easier you can email me a pic if u like - admin@legalbeagles.info and I'll redact it ( and delete original )