When do the debts 'actually' disappear?

pinkbabycakes

Hi all, after you BR day, when do the debts actually get written off for good? Although I was made BR 2 days ago, the money I owed is still out there somewhere isn't it?! Does somebody actually wipe the amount off the computer system or something similar at some point?! xx

skylight

Erm, the debts never really disappear........

The money you owe will go into your BR estate and your liability to these debts is taken away in your BR. The money will always be owed to your BR estate. If, by any chance, the OR is able to realise any money in the future from your BR estate (eg, bank charges that I am sure the insolvency service are waiting with keen ears for the result!) then that would go towards paying back whats owed. Or that inheritance from a death whilst you are BR.

The banks themselves (that you owed money to) may or may not wipe the money off their books. But it will always be marked as a bad/lost debt etc if not written off. It will stay as a bad debt for a while so they can claim tax relief against it. They can never make any claim to you for it - they can only press the OR for it.

Your liability to the debts disappear when the judge stamps the BR forms.

missymugwump

Sadly they also linger on your credit file for 6 years
Some creditors record them correctly as satisfied,partially satisfied,others do not however
So even though the ability to chase you for them has gone they do still often falsely report them on your CRF
It is well worth getting a copy of yours in a few months to make sure that they are correct

pinkbabycakes

That's interesting, thank you. So when you are discharged, does the OR still try and pay some of the debt back from any money I get? It actually sounds a bit confusing, the whole BR estate bit!

skylight wrote: »

Erm, the debts never really disappear........

The money you owe will go into your BR estate and your liability to these debts is taken away in your BR. The money will always be owed to your BR estate. If, by any chance, the OR is able to realise any money in the future from your BR estate (eg, bank charges that I am sure the insolvency service are waiting with keen ears for the result!) then that would go towards paying back whats owed. Or that inheritance from a death whilst you are BR.

The banks themselves (that you owed money to) may or may not wipe the money off their books. But it will always be marked as a bad/lost debt etc if not written off. It will stay as a bad debt for a while so they can claim tax relief against it. They can never make any claim to you for it - they can only press the OR for it.

Your liability to the debts disappear when the judge stamps the BR forms.

missymugwump

If you had any assets (property,valuable belongings,car that was disallowed etc..) these would be sold at auction and together with any IPA payments (the excess between your allowed living expenses as a bankrupt & your income,agreed by the OR ) are spread between your creditors
In some cases believe it or not the creditors can be paid in full,usually they get a few pence in the pound for every pound owed

Hope I put that in a way that's understandable LOL