Dealing with Creditors in the interim period before and after Bankruptcy being grante

Eternal_Optimist

Hi everyone,:T

I came on this board a couple of months ago to get advice for a friend who was considering bankruptcy in Scotland via the LILA (low income, low assets) route. Anyway to cut a long story short she was declared bankrupt in the summer and the advice she got from this board was invaluable in making the bankruptcy process much less traumatic than it could have been.
After being on a DMP with the CCCS I was advised by them recently that bankruptcy would be the best way forward for me as well. This was mainly because two of my major creditors refused to suspend interest so my monthly DMP payment to these two creditors was never reducing the balance outstanding. I have now submitted the initial forms and have received and sent back the statutory declaration form which the Accountant in Bankruptcy requires you to sign before bankruptcy can be granted.
In theory I could be declared bankrupt in the next couple of weeks but already, because my DMP payment has obviously been cancelled by the CCCS, creditors have been phoning and sending letters demanding contact. I have managed to avoid the phone calls this weekend but I know one has my work phone number and will start phoning that probably on Monday.
I just wonder what I can say to keep them at bay until I have written proof of my bankruptcy. My friend was lucky in that she cleared out to her parents’ house for the whole of the summer and therefore avoided this hassle, although her answering machine was in meltdown when she returned!
The CCCS have advised me not to inform creditors that I’m in the process of going bankrupt but didn’t offer any advice what to do in my current situation. If I tell creditors that the CCCS are reviewing my situation I know creditors will want my to contact the CCCS and that will put the CCCS in a difficult situation as that is not the truth.
Once I have written proof of my bankruptcy is the normal procedure to photocopy that proof and send it recorded delivery to my creditors or would it be better to phone them individually. My friend sent them recorded delivery proof but it seemed ages for the info to filter through to the relevant people/departments and she had a lot of quite nasty phone calls which I obviously would prefer to avoid. What is the general consensus here on how quickly creditors get the message? I know the AIB has up to two months to inform my creditors of my bankruptcy.
One final question and this is probably my biggest worry….I am the Executor of my Father’s will……what are the implications of my bankruptcy as far as this is concerned? To put it bluntly…..if he lives till I am discharged do I have to tell anybody about being bankrupt. I have not told anyone at all about my situation and I’m terrified that my elderly parents will find out before I get discharged,
Sorry for the long post, any advice on these matters would be great.

fiveyearplan

Eternal_Optimist wrote: »

Hi everyone,:T

I came on this board a couple of months ago to get advice for a friend who was considering bankruptcy in Scotland via the LILA (low income, low assets) route. Anyway to cut a long story short she was declared bankrupt in the summer and the advice she got from this board was invaluable in making the bankruptcy process much less traumatic than it could have been.
After being on a DMP with the CCCS I was advised by them recently that bankruptcy would be the best way forward for me as well. This was mainly because two of my major creditors refused to suspend interest so my monthly DMP payment to these two creditors was never reducing the balance outstanding. I have now submitted the initial forms and have received and sent back the statutory declaration form which the Accountant in Bankruptcy requires you to sign before bankruptcy can be granted. Are you in Scotland too? If not, you don't need an Accountant in Bankruptcy
In theory I could be declared bankrupt in the next couple of weeks but already, because my DMP payment has obviously been cancelled by the CCCS, creditors have been phoning and sending letters demanding contact. I have managed to avoid the phone calls this weekend but I know one has my work phone number and will start phoning that probably on Monday.
I just wonder what I can say to keep them at bay until I have written proof of my bankruptcy. My friend was lucky in that she cleared out to her parents’ house for the whole of the summer and therefore avoided this hassle, although her answering machine was in meltdown when she returned!
The CCCS have advised me not to inform creditors that I’m in the process of going bankrupt but didn’t offer any advice what to do in my current situation. If I tell creditors that the CCCS are reviewing my situation I know creditors will want my to contact the CCCS and that will put the CCCS in a difficult situation as that is not the truth. I would tell them that you have an appointment with CCCS in say 2 weeks to find a way forward but don't tell them you are considering BR - this should give you a bit of breathing space.
Once I have written proof of my bankruptcy is the normal procedure to photocopy that proof and send it recorded delivery to my creditors or would it be better to phone them individually. My friend sent them recorded delivery proof but it seemed ages for the info to filter through to the relevant people/departments and she had a lot of quite nasty phone calls which I obviously would prefer to avoid. What is the general consensus here on how quickly creditors get the message? I know the AIB has up to two months to inform my creditors of my bankruptcy. If they phone you after bankruptcy just give them your BR number and they shouldn't hassle you again
One final question and this is probably my biggest worry….I am the Executor of my Father’s will……what are the implications of my bankruptcy as far as this is concerned? To put it bluntly…..if he lives till I am discharged do I have to tell anybody about being bankrupt. No you won't have to tell anyone post discharge unless you have an IPA (I think) I have not told anyone at all about my situation and I’m terrified that my elderly parents will find out before I get discharged,
Sorry for the long post, any advice on these matters would be great.

If you don't have an IPA then you definitely won't have to tell anyone but if you do have an IPA then you would have to inform them but your family wouldn't necessarily find out. Lets hope your parents stay in good health!

blind-as-a-bat_2

You tried to come to come to an agreemant, they refused, they will now not get a penny


My reply to them would be

But seriously there is not much you can do, but niether can they.

so just say you have started the BR proscess and that is all you say

Or just dont bother talking to them at all if you can egnore the calls


There is no law saying you have to speak to them on the phone

dalip

Hi EO i see you are doing the deed too. Glad your friend is doing well. Cooking dinner but will pm you tomorrow,when i have more time. Good luck with your own journey.XX

Eternal_Optimist

Thank you very much for such a quick reply. Yes I'm in Scotland too so it is the AIB that deals with all bankruptcies here. Ok, so if I send them written proof you think they will be satisfied....that is reassuring. Obviously I'm not sure if I will get an IPA but as my income is made up of salary and tax credits I don't know how they assess the tax credit bit when it comes to making a payment order.
Thanks once again

blind-as-a-bat_2

I am the Executor of my Father’s will

You can not be an Executor while BR in england so i assume its the same, but as long as your father lasts longer than your BR its not a problem, but you must withdraw as an Executor if he passes during it

Sorry couldnt think of a better way to put it

Eternal_Optimist

:T Thanks to FYP, BAAB & Dalip for your replies, this board is such a help at times like this.
I know the Executor thing is a difficult subject to raise and discuss and i think BAAB you said what needed to be said:A

coolcait

Hiya Eternal optimist

If you've already applied for bankruptcy, it may be too late to look at other options (too late for your £100 fee anyway ).

But, if your main reason for going bankrupt was because two of your creditors i your DMP wouldn't freeze interest, is here any chance that the Debt Arrangement Scheme would work for you?

If you get accepted onto DAS, all of your creditors HAVE to freeze interest, fees and charges. And none of them can take legal action to enforce payment of the debt.

This post covers the advantages of DAS pretty well:

http://forums.moneysavingexpert.com/showthread.html?t=1155813

Because DAS is only available in Scotland, not many people know about it (not many people seem to know about it IN Scotland either - sadly!) But it's always worthwhile looking into it, IMO, if you live in Scotland.

Good luck with whatever you choose.

Eternal_Optimist

Well certainly them refusing to suspend interest helped me make my decision but I'm surprised no one at the CCCS mentioned this other route to me. They recommended bankruptcy via the LILA route as I fitted the criteria with my low income and not being a property owner and having no signifcant assets/savings. To be honest I don't have the mental energy or will to reverse this decision and I'm probably too far along the bankruptcy path for it to be a viable option now anyway. I do thank you for raising the option of DAS though because although it may not be for me it could certainly alert other Scottish readers of this forum of an alternative to sequestration

coolcait

Hiya again

I can understand why you wouldn't have the mental energy or will to go back on what you've decided - especially something like bankruptcy, which takes a lot of thinking about it before you get to that point.

CCCs may not have suggested DAS because they felt it wasn't a real option for you. I think it's harder to get onto DAS if it would take you more than 10 years to finish paying. But they might not have known about it - not enough people do know about it, sadly. Even in Scotland.

Going back to your original point about creditors, I'm afraid they almost certainly WILL contact you and pester you in the interim period, and for some time after BR - even after the AiB has contacted them. This happened to ex-OH - he went BR not long after the new rules came in, and I'm still getting calls for him here.

I think the advice you've been given is spot on. Sent them a copy of the award when you get it. Refer them to the AiB. If creditors are still calling after a month or so, there's no harm in calling AiB and seeing if you can find out when they wrote to your creditors. Ex got a bit of a kick out of telling some [expletives deleted :eek: ] from a DCA that he was appalled that the creditor's organisation was SO BAD that they had failed to note AN OFFICIAL COMMUNICATION from a Scottish GOVERNMENT agency!! :eek:

Good luck again!

Eternal_Optimist

Thanks again, Coolcait. Yes, once I get the award (seems strange for Bankruptcy to be seen as an award) I will photocopy it and send it recorded delivery to all my creditors and if I'm still getting hassle after a month of sending it I will contact the AIB. Btw I do like what your ex said to the DCA....I would like to say something like that too...but the last 6weeks has zapped my confidence/assertiveness that I'd probably burst into tears half way through the sentence!