Bankcruptcy Worries

Sylvant

Hi...my partner was yesterday declared BR because of a £2,500 debt she forgot about. We didn't receive a Statutory Demand and have had no Bailifs round. We just got a Bankruptcy Order on Creditors Petition through the post followed by instructions from the OR this morning. I only recently moved in with my partner and if I'd have known about the debt I'd have paid it and we wouldn't be in this mess.

My partner phoned the OR this morning asking about an Annulment but OR advised that if we wanted to do that then all her debts, not just this one, would have to be paid in full. She is currently overdrawn at the her Bank by a couple of grand. Does anyone know if I managed to contact the creditors (whom I can't find at the moment) who petitioned her and offer to pay the debt on her behalf then we could annul the bankcruptcy order?

The OR also told her that she would advise her Bank that it would not be necassary to freeze it, which I found to be rather strange?
Thanks for any help.

dalip

If you decide to get the bc annulled,not only would you have to pay all the debts off(to pay one and not another would be classed as preferential treatment and would land you in even more bother)but you would also be liable for the OR's fee which are aprox £1,700.


As far as the bank account is concerned it is the bank themselves that freeze accounts not the OR. Is the OR aware that there is an debt on the bank account?.dx

Sylvant

Didn't know that about the OR fees...thanks. We still need it annuled as we have plans for the future and her being bankcrupt scuppers them all.

Do you think we have a good chance going for annulment seeing that the proper steps weren't taken when obtaining the Bankruptcy Order by the Creditor?

The OR was told this morning that the account was in arrears but still offered to contact them to say in her opinion the account shouldn't be froze. To be safe than sorry I'll get my partner to open an account with Barclays or Co-op so she can get her wages paid into it.

Merry_Gentry

Do you think we have a good chance going for annulment seeing that the proper steps weren't taken when obtaining the Bankruptcy Order by the Creditor? If you are able to pay ALL of her debts and the OR's fees then there seems to be no harm in asking for the annulment, but that will be absolutely everything your partner owes.

The OR was told this morning that the account was in arrears but still offered to contact them to say in her opinion the account shouldn't be froze. To be safe than sorry I'll get my partner to open an account with Barclays or Co-op so she can get her wages paid into it. The overdraft will be included in the bankruptcy so not sure if they would allow her to continue to run the account.

philnicandamy

official word here....

http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/Canmybankruptcybecancelled.pdf

philnicandamy

dalip wrote: »

If you decide to get the bc annulled,not only would you have to pay all the debts off(to pay one and not another would be classed as preferential treatment and would land you in even more bother)but you would also be liable for the OR's fee which are aprox £1,700. as a rough guide....they can sometimes be considerably higher

Just a thought

JCS1

Check that all the proceedings and notifications, etc, were followed to the letter of the law.

If not, a bankruptcy can be annulled on the basis of "ought not to have been made" - and this way, you don't have to clear all unsecured debt at the same time.

Contact your local court, as you can also apply for a stay of adversiting if you don't want your details on the IS website (but only if you then go for an annullment).

SouthCoast

I thought that it was very unusual for a creditor to go as far as bankruptcy for a debt of £2,500.

I guess that the regular posters on this Board will be able to correct me.

Miss_Ratty

Hi there,

I hope you guys are ok, it must have come as a bit of a shock. If your partner is in a lot of debt, is it possible that BR could be viable? It's not something to take lightly, however it sounds like you are stuck in between a rock and a hard place. I would also ask to speak to someone at CCCS or the Citizen's Advice Bureau, as they will (or should!) be able to inform you of whether the correct procedures have been followed, and can advise you of options after taking into account your situations. It's worth a shot for a bit of peace of mind, but keep posting for support in the meantime.

Sylvant

Thanks all....

After spending hours shifting through letters last night it seems that my partner has got herself in a bit of bother. She suffers from depression and it seems that the bills and demands and arrears have mostly been ignored since late last year. I've been trying to support her as best I can but what is really worrying me is the situation with the house. Her ex husband still owns half and the agreement was that they each paid half the mortgage. A statement shows he hasn't been paying or my partner and I'm quite suprised it's not been repossessed before now.

CCCS will be contacted today and hopefully they may be able to ease the pain a little. But I can't help thinking the house will go.

I personally still have a mortgage for property elsewhere that we were decorating at weekends as a view to selling. But, with it being a one bed flat, me, her and the two kids can't possibly fit in.

The OR interview is on 7th July and although only two and a bit weeks away it's going to be hard to be strong for her.

Thanks for all the help up to now, it's good just being able to share things now and then.

iquit

Thanks for the update. Wishing you all the best.