Third party paying off Bankruptcy Petition Debt – 33 Bedford Row
‘In England and Wales, where a bankruptcy petition (the “Petition”) has been presented against a debtor/defendant, one potential option the debtor/defendant (“Debtor”) may seem to have available, in order to avoid a bankruptcy order, is to ask family, friend(s) or a colleague(s) etc. (a “Third Party”), to pay off the Petition debt for the Debtor. If the Debtor is fortunate enough to have a Third Party willing to do this:
(a) will this amount to the Petition debt being properly satisfied, such that the Petition must be dismissed?
(b) should the Third Party payment be made direct to the Petitioner (i.e. not to the Debtor for the Debtor to then forward it on to the Petitioner)?
(c) must the Third Party make a gift of the money, or can the payment be part of a loan arrangement with the Debtor?’
33 Bedford Row, 16th February 2025
Source: www.33bedfordrow.co.uk
