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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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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?

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