Bankruptcy...should I contact my creditors?

Davemac

Originally posted this on the 'Debt-Free Wannabe' board. Oops!
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I left a post the other day (see link below) and following helpful advice, I contacted CAB and also spoke to someone at CCCS.

http://forums.moneysavingexpert.com/...html?t=1220495

I have chased the solicitor and DMP company mentioned in that post and am no longer entertaining the idea.

After much delibaration, I have decided do go down the bankruptcy route, which as a non-home owner with no dependants, is I feel, the right move for me personally. Being totally debt free is what I feel I need to be and this will help me achieve that, although I am well aware of the implications.

Even so, there is one or two things which are still nagging at me and any advice would be appreciated.

Firstly, I now have the Bankruptcy forms and have made an appointment with the local County Court for November 12th, when I will formally file for bankruptcy.

Although that date is less than a month away, in the meantime, the credit card companies will doubtless contact me. I have taken on board what was said in reply to my original post and will attempt not to enter into conversation with them.

However, having just spoke to a very helpful guy at CCCS, he suggested it might not be a bad thing to put into writing a short letter to each creditor, explaining that I am seeking legal advice from the CAB before filing for bankruptcy, given my perilous financial state. This way, I would display a helpful attitude and avoid looking like I was burying my head in the sand.

Would this be worth doing? Something tells me it will only invite earlier communication? Should I leave my creditors be and wait for November 12th to come around?

As i live with my parents, I don't want this to impact on them, so the last thing I want is bailiffs knocking round, although I'm told that given the timescale, this would be unlikely (although not 100% unlikely). Bailiffs are a worry, I must be honest.

Also, does anyone know whether, following bankruptcy, I might be unable to rent a flat further down the line? Are all letting agents and private landlords likely to check credit history or is it down to each individual organisation?

I am aware of my right to open a basic bank account too, but as I have worked overseas previously - and might do again in future - I was wondering whether I would be unable to do the same with an overseas bank should i need to open a foreign account.

Once again, a million thanks for any help. Great site.

Dave

So_Sad_Angel

Hi Dave...welcome to the BR board.

Good to see that you took the advice on DFW & called the debt charities & got professional advice.

I would be tempted not to contact your creditors until you are bankrupt...after all something might happen in the meantime ( eg lottery win ...although like me you are probably seeing that pink pig flying across the sky!!) . If creditors know your plans at this stage they may well increase the pressure & instruct debt collection agencies to call etc.

In terms of future renting this is entirely posible although may need 6 months rent up front and/or a guarantor as letting agents do do credit checks & some insist that you are working as well.

Possibly worth getting yourself on housing association/council lists if you have`nt already done this.

Anyway....welcome & keep asking the questions.

Angiexx

tigerfeet2006

If anyone rings you then don't enter into conversation with them just say you are seeking advice about your financial situation from the CAB and someone will be in touch shortly, say you would like further communication in writing and then hang up.

It is not a lie as someone will be in touch shortly, the OR to give them the good news of your BR.

Davemac

Thanks Angie.

I take your point about not contacting my creditors. That was my initial feeling in all honesty.

Appreciate the advice anyway.

Cheers

Dave

Costus

Hi Dave, just a point about renting a property in the future. We rent from a private landlord and we didn't say anything to the landlord about our debt problems, as they didn't ask, so they were none the wiser. As long as your in the property and paying the rent on time most private landlords aren't too fussed. Ask any prospective private landlord to bring a tenancy agreement for you to check over when you view any furture property, that way you can check for any BR restrictions on the agreement before going any further, ie paying deposits etc. If there are any BR restrictions just say that you are indeed BR, and would he have any objections to you moving in, he can only say no thanks, nothing ventured nothing gained. If your not asked then don't say anything. We were previously in a housing association flat, (Nottingham community housing association) and before we moved in we had to fill in a questionnaire about ourselves and one of the questions did ask if we had ever been declared BR.
I hope this information helps you in the future.
Good luck.

maxmycardagain

Costus wrote: »

We were previously in a housing association flat, (Nottingham community housing association) and before we moved in we had to fill in a questionnaire about ourselves and one of the questions did ask if we had ever been declared BR.
I hope this information helps you in the future.
Good luck.

2 points

1. a welfare housing (councils/HA's) shouldnt be asking
2. "ever" been BR? so a criminal has protection once his/her sentence is "spent" but going BR is for EVER? what does that tell you?

http://www.lawontheweb.co.uk/rehabact.htm

lxpeanut

Davemac wrote: »

.

Would this be worth doing? Something tells me it will only invite earlier communication? Should I leave my creditors be and wait for November 12th to come around?

Dave

I didn't tell my creditors anything untill they contacted me and it took them two months to get in contact. One whose always been easy to talk to tried to persuad me out of it but has now left me alone. The others haven't been in touch yet. Although I got a letter from Helifax saying I'd broken my promise to them (I was tempted to reply with you started it) and they would be taking further action they've not been in touch since though.

blind-as-a-bat_2

Civil Proceedings
In civil proceedings, no-one should be asked questions which might lead to disclosure of spent convictions. If such questions are asked, they need not be answered. This rule does not apply:

in civil proceedings relating to children (adoption, guardianship, wardship, marriage, custody, care and control, schooling);
when the court is satisfied that justice cannot be done unless evidence of spent convictions is admitted (NB anyone who has spent convictions can always consent to evidence being given about them);
if the proceedings involve a matter excepted from the Act

The rule on civil proceedings applies not only to ordinary courts, but also to arbitration proceedings, disciplinary proceedings before an administrative tribunal, and to a club committee which has powers to affect anyone's rights, privileges, obligations, or liabilities.

well BR is a civel procedure and on discharge you could argue that the 'conviction' is spent so the above should apply

but doubt that would apply that simply