Borrower has gone bankrupt

WhiteRabbit_3

Hi this may have been covered somewhere else but I haven't been able to find it. So.......


One of my wife's family members has recently gone bankrupt and lost their business. Unfortunately they (unknowingly to me) had borrowed a significant amount of money from my wife by her opening several credit card accounts. For most of these cards the family member kept it themselves as soon as it arrived and I was completely unaware of it until the bankruptcy, at which point me and my wife were faced with thousands upon thousands of pounds of debt.


As soon as the bankruptcy went through and I found out about the cards, we organised to shift this on to cards with better APRs, and we are trying to organise an unsecured loan to cover the rest. All our savings have been sunk into this too. This is going to take a very very long time to recover from


My question is - does anyone know the situation with bankruptcy and owing to family members? Is there any way for their debt to us to be acknowledged in the bankruptcy (even though it has already taken place)? It is clear from the statements for the credit cards that these transactions were relating to the failed business, so it would be obvious to anyone looking at these that this isn't some crazy shopping spree that I am desperately trying to blame someone else for.


And even if it were possible for this to be acknowledged, would that get us anywhere?


Thanks for any advise you might have.

hadenoughnow

WhiteRabbit wrote: »

Hi this may have been covered somewhere else but I haven't been able to find it. So.......


One of my wife's family members has recently gone bankrupt and lost their business. Unfortunately they (unknowingly to me) had borrowed a significant amount of money from my wife by her opening several credit card accounts. For most of these cards the family member kept it themselves as soon as it arrived and I was completely unaware of it until the bankruptcy, at which point me and my wife were faced with thousands upon thousands of pounds of debt.


As soon as the bankruptcy went through and I found out about the cards, we organised to shift this on to cards with better APRs, and we are trying to organise an unsecured loan to cover the rest. All our savings have been sunk into this too. This is going to take a very very long time to recover from


My question is - does anyone know the situation with bankruptcy and owing to family members? Is there any way for their debt to us to be acknowledged in the bankruptcy (even though it has already taken place)? It is clear from the statements for the credit cards that these transactions were relating to the failed business, so it would be obvious to anyone looking at these that this isn't some crazy shopping spree that I am desperately trying to blame someone else for.


And even if it were possible for this to be acknowledged, would that get us anywhere?


Thanks for any advise you might have.

If I have read right, it appeaars you have borrowed money to a family member. Unfortunately the debt is still yours and will have to repaid by you, you are technically a creditor in your family members bankruptcy and should be listed in his forms as such, whether you get any monies back will depend on any IPA imposed or any assets sold. Its always difficult when family loans are involved, although its completely wrong, he/she may offer to repay you even after the BR. I hope this helps a little.

JCS1

You need to contact the OR dealing with the BR and make sure you are listed as a creditor - if you seach the insovlency service website for the family members details, the OR dealing with the case will be listed on there.