Help - Bankruptcy Scotland pre April 2008

Pammybun

Hi

I just want to share with you what is a very unfair piece of legislation by the Scottish government which affects those who were made bankrupt pre April 2008.

I have read on the forums posts from people who are !!!!-a-hoop at filing their bankrupties after April 2008 and therefore only having a year to serve before discharge - that is great for them, however could they spare a thought for those who entered bankruptcy prior to this date - in some cases in February or March 2008 and who are still having to wait three years before discharge.

We entered into bankruptcy in May 2007 and will not be discharged until May 2010. It has been a total nightmare as we have lost our home and struggled to get anywhere to rent - despite being classed as priority homeless by the council.

To be honest it kind of sticks in our throats that we will have to wait three years before being discharged yet those entering bankruptcy in April will be discharged a full year before us - THIS IS NOT RIGHT AND TOTALLY UNFAIR.

I have spoken to numerous accountants who work with bankrupts and they all felt that there would have been a decision made whereby anyone who was already bankrupted pre April 2008 would automatically be discharged (if they had served a year) by the end of 2008 (or at least April 2009) - this has not happened and a lot of people (myself included) want to know why.

I have emailed the Finance Minister and also the Justice Minister in the Scottish Government to ask that they do something to help those of us penalised and am assured thata reply will be forthcoming.

If I was a prisoner Amnesty International would be up in arms at this discrimination but I am just a bankrupt so nobody seems to care.

I know it is a lot to ask but I would appeal to anyone out there who has a sense of fair play to please email the scottish justice minister (Kenny McAskill)- contact details at www.snp.org and ask that he reviews this legislation to make it equal for those bankrupted prior to April 2008.

Sorry if sound like I am ranting but I am so frustrated by the lack of action on this that I could weep.

Pam

PS sorry for lack of smilies but I am not feeling very smiley at all!

tigerfeet2006

Can I ask if you were advised that there was going to be a change in legislation? When you went into your bankruptcy were you aware it would be 3 years? Sorry not trying to be obstructive, just trying to find out what you were advised at the time.

BTW: This happened in England a few years back as well. We went from 3 years to 1 year.

shadowdragon

Pammybun wrote: »

I have spoken to numerous accountants who work with bankrupts and they all felt that there would have been a decision made whereby anyone who was already bankrupted pre April 2008 would automatically be discharged (if they had served a year) by the end of 2008 (or at least April 2009) - this has not happened and a lot of people (myself included) want to know why.

Hi

I do agree with you 100% on the matter, but can I just ask concerning the above, is there a chance you could be discharded in a few months time? end of this year or by april 2009?

Or am I mis interpreting what you said?

s1lvercloud

Sounds unfair

xocbc

I was lucky, I took control of going BR and managed to stave it off until April. So many people were waiting, it took forever for them to process it.

It is very harsh that if a creditor made you bankrupt on 30 March you are BR for 3 years but if it happened on 1 April it is 1 year.

Unfortunately however, legislation of any kind doesnt usually get backdated to the benefit of anyone.

Pammybun

shadowdragon wrote: »

Hi

I do agree with you 100% on the matter, but can I just ask concerning the above, is there a chance you could be discharded in a few months time? end of this year or by april 2009?

Or am I mis interpreting what you said?

Well so far the response I have had from the Accountant in Bankruptcy is that at present there is no chance that people bankrupted before April 2008 will be discharged without "serving" the full three years.

I am appealing to them and also the the Scottish Government as this is totally unfair.

When we entered into bankruptcy we were advised by our accountant that the Institute of Accountants in Scotland were of the view that the new legislation would have some sort of allownce for those already in a bankruptcy arrangement whereby they would be discharged automatically if they had already served a year. This has not happened.

Since this legislation came into effect I have spoken not just to our trustee but to others and they were all of the same opinion ie that an allowance should have been made but for some reason it was not.

The fact is that we both work so both my husband and myself have money taken from us every month and will do so for another 19 months.
Pam

tigerfeet2006

Thank you for claryfing that for us.

Unfortunatly OR's/ trustee's get bonus's for bringing in IPA's and BRO's. Has your's changed at all since your first payment? Have your circumstances changed at all since then? Did you include things like medical, holidays etc on your SOA.

coolcait

Pammybun wrote: »

The fact is that we both work so both my husband and myself have money taken from us every month and will do so for another 19 months.
Pam

Hiya Pammybun

But even under the new regulations, you would still have to pay money for three years :
"2.2.2 How long do I have to pay contributions?

An IPA and an IPO last for 3 years from the date they are set up.
It is a criminal offence to fail to comply with the terms of an IPO. If you stop making your contribution under your IPO, your trustee may report you to the sheriff.
If you stop making your contribution under your IPA, your trustee may apply to the sheriff for an IPO to be made. You must, therefore, contact your trustee as soon as possible if you are unable to continue paying your contribution." (taken from AiB website).

Discharge after one year doesn't change that fact. Nor does it change the other negative effects of bankruptcy - as someone else pointed out on the DFW board.

As for the Insolvency Practitioners you've spoken to - they may well have had a 'view' on what would happen, but did they actually check it out before discussing it with you? It doesn't sound like it. Did they lobby the Scottish government to have the new law cover people who were already bankrupt? I'd be surprised if they did - especially if there was the slightest chance that it would cut down on the amount of money they make from bankrupt estates! (I'm afraid I'm a cynic on that front).

I can sympathise with you, but from what you've said I can't help but feel that you might have been slightly misled by the people you were talking to. 'Discharge' doesn't mean that you no longer have to pay contributions, or that the trustee can no longer complete the sale of assets (for example). From the AiB website again:

"Even though you have been discharged, your bankruptcy will not be finished until your trustee has done everything they need to and they are discharged from their duties. You must co-operate with your trustee until they are discharged. You will be notified of your trustee's application for discharge."

neverdespairgirl

Pammybun wrote: »

The fact is that we both work so both my husband and myself have money taken from us every month and will do so for another 19 months.
Pam

In England, anyway, if you have to make payments during the first 12 months of bankruptcy (or before discharge, if there is early discharge) that carries on for 3 years anyway, or at least 2 years after discharge.