Done it, BR, now what

lurch

Hi, I hope this is in the right place, if not can it be moved to the right place please?

I have finally done it after months of worrying, I am an electrician that worked through agencies working on new building and refurb projects, but due to the recession and the down turn in the building trade I have had to sign on and now receive JSA (£64.30 p/w), was earning £700 plus p/w.

I was unable to pay a bank loan and several credit cards, using cc's to borrow cash so I could pay loan and cc payments, not a wise thing to do, once in a hole you should stop digging.

I filed for br on the 29/05/09, and have lost a motorbike and a small boat that I owned. I did have debts of £40K.

The question that I would like answered if anyone can is,

Q. I received a letter from a credit card company Cap***t One, who I owe £7782.65, after they had known that I had gone br.

Letter is long so I will just print the main bit that is in question,

"No sum of money is required to be paid by you under this notice. The Bank will participate in any dividend paid by the OR or Trustee in Bankruptcy.
YOU SHOULD BE AWARE THAT IF WE TAKE YOU TO COURT AND GET A JUDGMENT AGAINST YOU REQUIRING YOU TO PAY US THE MONEY YOU OWE US UNDER THE AGREEMENT, YOU MAY HAVE TO PAY US BOTH THE AMOUNT OF THE JUDGMENT AND INTEREST UNDER THE AGREEMENT ON ALL THE SUMS OWED BY YOU AT THE DATE OF THE JUDGMENT UNTIL YOU HAVE PAID THESE IN FULL. THIS MEANS THAT EVEN IF YOU PAY OFF THE WHOLE AMOUNT OF THE JUDGMENT, YOU MAY STILL HAVE A FURTHER SUM TO PAY.

The Bank will not take you to court to get a judgment against you for the amount you owe under this agreement whilst the Bankruptcy Order is in place.

IF YOU ARE NOT SURE WHAT TO DO, YOU SHOULD GET HELP AS SOON AS POSSIBLE, FOR EXAMPLE, YOU SHOULD CONTACT A SOLICITOR, YOUR LOCAL TRADING STANDARDS DEPARTMENT OR YOUR NEAREST CITIZENS' ADVICE BUREAU."

ETC, ETC, ETC.

Does that mean that they can still claim money owed before bankruptcy in full with interest after I am declared a discharged bankrupt in 12 months?

I know this is long winded but so is the letter.

thanks for reading and for any advice offered.


Paul (Lurch)

iquit

Hi Paul, welcome to the club. I'm not an expert but this letter has no substance. Once you are bankrupt no judge will over rule your bankruptcy in favour of one creditor. The process of bankruptcy is such that you are relieved of your debt and put under some financial restrictions/ penalties. I would forward the letter to your OR.

lurch

Thanks Iquit, that's is a good idea, I will speak to my OR on monday.

cheers Lurch

Lost2

Hi Paul I owed Capital One Visa and Master Card money
I think it must be some sort of standard letter as I have
had them to.I went BR in March so I would just report it to your OR
who will sort them out

lurch

thanks Lost2

philnicandamy

Dont worry too much paul....forward the letter to your OR as suggested...the CC company have diddly's chance of getting anything now as the debt was included in your bankruptcy!!

Teenie_D

Hi just want to reiterate what everyone else is saying-dont worry about it, my OH was discharged from his bankruptcy in 2003 and he still gets letters (he received another one on Monday) from debt collectors. I used to get so worried about it thinking we would have to pay it off (i didnt know much about being BR) but although its a pain in the backside he just phones them up and explains that the debts were covered by his bankruptcy. They have always been really pleasant and apologetic about it.

lurch

Thank you for your replies, it has given me a piece of mind, I was (am) feeling quite depressed and cry for no reason, but I am sure I will get over it.
This forum with its wonderfull members who have been through it and are still going through will help me through it.
thank you all.

Paul

fiveyearplan

Teenie_D wrote: »

Hi just want to reiterate what everyone else is saying-dont worry about it, my OH was discharged from his bankruptcy in 2003 and he still gets letters (he received another one on Monday) from debt collectors. I used to get so worried about it thinking we would have to pay it off (i didnt know much about being BR) but although its a pain in the backside he just phones them up and explains that the debts were covered by his bankruptcy. They have always been really pleasant and apologetic about it.

Has your husband done the credit file clean up? If he was BR in 2003 it should be falling off his credit file if everything was recorded on there correctly.

Dodger61

Standard letter from Cap One once they know you have gone BR. Had a few myself. Dont worry, the debt is was included in your BR. They can whistle Dixie for it.

Lost2

lurch wrote: »

Thank you for your replies, it has given me a piece of mind, I was (am) feeling quite depressed and cry for no reason, but I am sure I will get over it.
This forum with its wonderfull members who have been through it and are still going through will help me through it.
thank you all.

Paul

We've all been there Paul try not to worry, you have done the hard part
to think this time next year