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  • FIRST POST
    • RothwellGuy84
    • By RothwellGuy84 15th Jun 17, 11:05 AM
    • 4Posts
    • 0Thanks
    RothwellGuy84
    Undischarged Bankrupt - Attachment of earnings advice
    • #1
    • 15th Jun 17, 11:05 AM
    Undischarged Bankrupt - Attachment of earnings advice 15th Jun 17 at 11:05 AM
    Hello,

    I became bankrupt in Mach 2017, due to spiralling debts of 27k and no way to meet my repayments due to personal issues.

    To cut a long story short: I had a CCJ against me, from Cabot Financial which is for one of the debts that was entered into bankruptcy. At the time, I applied for this to be suspended which was accepted. I then took advice from a debt charity who advised me to go BR, which I did.

    I promptly had the meeting with the OR, who subsequently advised me that I did not have enough spare income for an IPO/IPA. She also said that as there is no interest to the OR of getting the CCJ/AoE removed as they would only do so if they were able to have that money for an IPO/IPA. She said I needed to seek my own legal advice.

    My employer and myself have now received an AoE order from the court telling him to deduct £80 from my salary monthly until the Cabot debt is paid. I have spoken to the OR who said I still need to sort out my own advice and there is nothing further they can do.

    I appreciate that I am an undischarged bankrupt so may not be able to do anything about the AoE, but I was wondering if there was anything I could do. Any advice greatly received.

    Thank you.
Page 1
  • National Debtline
    • #2
    • 15th Jun 17, 11:22 AM
    • #2
    • 15th Jun 17, 11:22 AM
    Hi RothwellGuy84

    Welcome to MSE. You should not be pursued for any qualifying debt that has been included in the bankruptcy. Presumably Cabot has been informed of the bankruptcy order? I would send them the proof of the bankruptcy again and make a complaint that they should not have applied to the court for further enforcement action. You can escalate this to the Financial Ombudsman Service if necessary.

    If Cabot refuse to stop the attachment of earnings order (AEO) you can make an application to the court to change the terms, in this case stopping the AEO due to the bankruptcy. You will need to complete court form N244 and there will be a fee of £255, if you are on a low household income you may qualify for a remission on the fee. There is more detail on how to do that here https://www.nationaldebtline.org/EW/factsheets/Pages/countycourtattachmentofearningsorders/attachmentofearningsorders.aspx

    Good luck.

    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • RothwellGuy84
    • By RothwellGuy84 15th Jun 17, 11:44 AM
    • 4 Posts
    • 0 Thanks
    RothwellGuy84
    • #3
    • 15th Jun 17, 11:44 AM
    • #3
    • 15th Jun 17, 11:44 AM
    Hello, and thank you for your advice.

    I've contacted Cabot and Mortimer Clarke today who have said they will look into it and get back to me, so fingers crossed on that one.

    The CCJ was originally registered prior to my bankruptcy, but the AoE sent after I was BR. Does this change things?

    I had previously written to the court with a copy of my BR notice, however if I do not hear within a few days I guess N244 is the only way to go.

    Thank you.
  • National Debtline
    • #4
    • 15th Jun 17, 12:16 PM
    • #4
    • 15th Jun 17, 12:16 PM
    Hi there again


    Don't worry, it won't make a difference that the AEO was sent after you were made BR. Any qualifying debt that you were liable for prior to the BO being made will be included in the bankruptcy, and that means you cannot be pursued for it.


    It should just be a case of making sure all parties are aware of the bankruptcy order, hopefully Cabot and Mortimer Clarke will then stop all further action to collect the debt. I would suggest calling the court about it too to make sure they received the information you sent.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • ciderboy2009
    • By ciderboy2009 15th Jun 17, 5:35 PM
    • 262 Posts
    • 231 Thanks
    ciderboy2009
    • #5
    • 15th Jun 17, 5:35 PM
    • #5
    • 15th Jun 17, 5:35 PM
    I would also be contacting the court that issued the AoE order - they should be able to get in cancelled.
    • Johnsmith2016
    • By Johnsmith2016 18th Jun 17, 11:52 PM
    • 431 Posts
    • 221 Thanks
    Johnsmith2016
    • #6
    • 18th Jun 17, 11:52 PM
    • #6
    • 18th Jun 17, 11:52 PM
    Ignore them. Each time they call refuse to discuss and instead give them the phone number & address of your official receiver
    Ask them to not contact you again and speak to your official receiver in the first instance on any matter. If it's worth anything the official receiver will contact you.
    They are trying it on. The debt is in the bankruptcy so just don't indulge them in telephone conversation, return all mail with note giving the address of your official receiver ... they are to deal with them going forward not you.
    • Geoff1963
    • By Geoff1963 19th Jun 17, 12:33 AM
    • 931 Posts
    • 581 Thanks
    Geoff1963
    • #7
    • 19th Jun 17, 12:33 AM
    • #7
    • 19th Jun 17, 12:33 AM
    The debt is in the bankruptcy
    Indeed. The whole point of bankruptcy, is that it includes everything.
    • Mouse007
    • By Mouse007 19th Jun 17, 1:32 PM
    • 62 Posts
    • 37 Thanks
    Mouse007
    • #8
    • 19th Jun 17, 1:32 PM
    • #8
    • 19th Jun 17, 1:32 PM
    Ignore them. Each time they call refuse to discuss and instead give them the phone number & address of your official receiver
    Ask them to not contact you again and speak to your official receiver in the first instance on any matter. If it's worth anything the official receiver will contact you.
    They are trying it on. The debt is in the bankruptcy so just don't indulge them in telephone conversation, return all mail with note giving the address of your official receiver ... they are to deal with them going forward not you.
    Originally posted by Johnsmith2016
    This won't help, the OP's employer has received an AoE instruction from the court.
    • RothwellGuy84
    • By RothwellGuy84 20th Jun 17, 4:01 PM
    • 4 Posts
    • 0 Thanks
    RothwellGuy84
    • #9
    • 20th Jun 17, 4:01 PM
    • #9
    • 20th Jun 17, 4:01 PM
    Hi,

    Just thought I'd give an update.

    Thank you for your responses. As the last poster states, my employer has received an AoE demand from the court, so he is not allowed to stop paying the AoE until he has a letter from the court telling him to stop.

    I've tried to call Northampton County Court but they never answer the phone. I emailed two weeks ago and heard nothing, not even an acknowledgement reply, so I am at the end of my tether.

    I've booked half a day off work tomorrow so that I can physically go to court in Northampton with a copy of my Bankruptcy, would this be sufficient?
  • National Debtline
    Hi there again


    I'm sorry to hear this hasn't yet been resolved. Did you get a response from Cabot and Mortimer Clarke? The easiest route would be for them to stop the AEO by instructing the court they want it withdrawn.


    Whilst you can go directly to the court I'm not sure whether they will take it upon themselves to stop the AEO when they see the bankruptcy order, or if they will tell you to complete the N244 and apply to change the terms of the AEO.


    Unfortunately it can be very hard to get through to the court over the telephone and I understand your frustration. Good luck and please keep us posted on what happens.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
    • RothwellGuy84
    • By RothwellGuy84 22nd Jun 17, 9:36 AM
    • 4 Posts
    • 0 Thanks
    RothwellGuy84
    Hello,

    Just another update: I went to the court office at Northampton County Court yesterday lunch time. The clerk informed me that my case has gone back to a district judge to be looked at, after they received my letter informing them of the bankruptcy. She said there is a backlog and it may take a few weeks to get looked at. Can I assume this all sounds positive?

    Thank you for all your advice so far.
  • National Debtline
    Hello again


    Yes I would say it is positive. They have received your paperwork and are dealing with it, it's just unfortunate you couldn't get through on the phone to find this out. We know you can't be pursued for a qualifying debt that you were liable for at the point you were made bankrupt, so it should just be a case of the judge agreeing to cancel the AEO.


    Fingers crossed it's sorted soon, do keep us updated.


    Susie
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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