How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
Type Your Law Question Here...
Ash is online now

In July 1999 my brother paid me £5600 for money I had given

Resolved Question:

In July 1999 my brother paid me £5600 for money I had given him over the preceding 12 months. In September 2009 he declared himself bankrupt. I have now had a letter from a debt collector stating that I have to repay this money to the receiver as I was treated as a preferential creditor ???
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.

Alex Watts : Hello my name is ***** ***** I will help you with this. Please note that I am a working Solicitor and may be on and offline as I have to attend Court and meet with clients, even at weekends. As such you may not get an instant response when you reply, but rest assured I will be giving your question my immediate attention upon return You do not need to wait here as you will get an email when I reply.
Alex Watts : No, this can't be right.
Alex Watts : Any debt, even if owed beomes stat
Alex Watts : becomes statue barred agents
Alex Watts : Any debt, even if owed becomes statute barred after 6 years.
Alex Watts : ao if
Alex Watts : So if he paid you in 1999 they had until 2005 to make a claim.
Alex Watts : He went bankrupt in 2009 and are therefore out if time.
Alex Watts : Can I clarify anything for you about this today please?
Customer: Sorry it was 2009 not 1999:-(
Customer: No he paid in July 2009 and went bankrupt sept 2009.
Alex Watts :

In that case they are right

Alex Watts :

If you were paid back there is 6 years to make a claim for any debt

Alex Watts :

If you were paid before anyone else you could be a preferential creditor

Alex Watts :

However you could argue because some 5 years has elapsed you are no longer preferantial.

Alex Watts :

It is a matter for you

Alex Watts :

Can I clarify anything?

Customer: What is the argument for not being preferential after nearly 5 years? I did not know he was going to be made bankrupt and took my money back as it was owed to me ??
Alex Watts :

The longer it is the harder it is to argue that

Alex Watts :

Because you are related, that is where the argument is coming from

Alex Watts :

Does that clarify?

Ash and other Law Specialists are ready to help you

Related Law Questions