UK Bankruptcy Law
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1. Under Bankruptcy law, one creditor cannot gain a preference over another. All creditors must be treated equally or pari passu in the bankruptcy. NO one creditor can be preferred over another creditor. By law, the period during which all creditors must be treated equally has been extended to include the period immediately before bankruptcy to include three months prior to the initiation of bankruptcy. This is why you have now been written to by the official receiver. I regret to say that you will not be able to successfully defend an action by the official receiver in law. However, you would be able to retain the money if you could show that you had an equal claim against the bankrupt which could be set off against the money he has paid to you. Apart from this option, there is little to help you. I regret to say that it makes no difference why you gave him the money, whether as a good will gesture or otherwise.
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2. You need to raise some debt which you can set off against the money they are claiming ie some additional money that the bankrupt owes you. You had a personal relationship with the bankrupt so you must be able to see if this is the case. Finally, the law is draconian and very sweeping. It is ill thought out.
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