UK Bankruptcy Law
UK Bankruptcy Law Questions Answered by Verified Experts
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.
Please RATE the Answer positively so that I may get paid
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.
DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.
The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).