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This is where it gets a little complicated. I will try to be brief.
In 2006 my ex partner lent £25,000 directly to my brother - my brother and I were going into business and my brother used the money to buy shares in the company.
In 2010 my ex-partner threatened me with legal action to force the sale of our jointly owned property and recovery of the £25,000 lent to my brother. I was recovering from heart surgery and was unable to contest it so I signed a consent order to pay the £25,000 and sell the house. The business went bust and I was unemployed and unwell. I was unable to comply with the consent order to pay the £25,000 so my mother paid it for me. The house subsequently sold and that was that.
In January 2013 as a result of the business closure I was declared bankrupt. In the meantime I had recovered from illness and found a new job and was paid a bonus. In August and October 2012 prior to being made redundant I paid that bonus of £24,000 back to my mother. My mother had originally borrowed the money from her siblings, one of whom was her brother who was now dying of cancer. I felt morally obligated to repay my mother at the earliest opportunity which I did. I declared this to the Official Receiver in the bankruptcy questionnaire. The next thing I know I am being threatened with a bankruptcy restrictions order unless the money is repaid. I didn't have it but in any event didn't think is was fair to have to pay it since it was originally paid under a consent order with the court and the original debt was actually my rogue brothers anyway. I received a 4 year BRO and they then started to chase by mother for the £24,000. In their last 'without prejudice' letter they gave her until next week to accept a £15,000 settlement or they will seek a charge on the house at 8% interest....
Yes - paid my mother in August (£18k) and October 2012 (£6k)and was declared bankrupt in January 2013. The bankruptcy followed a court case brought by Grant Thornton which I fully expected to win. The judgement hearing was on 17 August 2013 - after the £18k payment but before the £6k payment. I appreciate the technicalities but my mother was a wholly innocent party to this having helped me comply with the earlier consent order. I was punished with a 4 year BRO for being unable to repay them the money and now they want two bites of the cherry by recovering the money from my mother.
Please confirm then that the status of the 'tenancy' of the ownership of the property (tenants in common v joint tenants) would make no difference? It is a sad world indeed when what is morally correct is perceived to be bad behaviour....!