what happens if I incure more debt (i.e sued) while im in my bankruptcy period?

ric_flair

What happens if I incur more debt while im in my bankruptcy period? Can that be included as part of the bankruptcy?

I’m quite worried that I may be sued for something during the period I’m in my bankruptcy. (so to clarify, sued after I have been declared bankrupt, but im not discharged).

JCS1

Really need a few more details to give any advice, does the person who might sue you know you are BR? That might be enough for them to stop court proceedings.

Ibanez

I don't know if this helps, but when I had my OR call this week I was told that from this point on if I were to manage to get any credit and then defaulted on it, it can not be delt with in my bankruptcy.

I am not sure this is the same situation as you describe though??

Dave

skylight

Sued for something other than a debt you owe??? Any debt you owe will be included in your BR and no-one can sue you for it at all. If it was a company thing that went wrong then depending on your status (sole trader or ltd etc), it would depend on who was actually going to be sued (you or company) and who was BR (you or company).

Of course, if you ran someone over and they are suing you now for it after your BR, then it would be a new debt and can not be included.

It really does depend on who, what, where, when etc.

ric_flair

Ok thanks for the quick response.

Yes, sued for something not included in the BR.

To be more specific, its a breech of a covenant restraint in an employment contract that is alledged to have happened few months ago before bankrupcy, and I may be sued for damages.

Ther company suing is suing me (individual), not a ltd company, and they do NOT know i'm (or have filed) for bankrupcy.

JCS1

ric_flair wrote: »

Ok thanks for the quick response.

Yes, sued for something not included in the BR.

To be more specific, its a breech of a covenant restraint in an employment contract that is alledged to have happened few months ago before bankrupcy, and I may be sued for damages.

Ther company suing is suing me (individual), not a ltd company, and they do NOT know i'm (or have filed) for bankrupcy.

If you get any paperwork, respond with a copy of the BR certificate. They are unlikely to proceed with any action if they know they won't get anything.

ric_flair

JCS1 wrote: »

If you get any paperwork, respond with a copy of the BR certificate. They are unlikely to proceed with any action if they know they won't get anything.

They are not looking for money really, they are looking to make me stop competing against them. If they dont try and sue, I'll still be competing....

So what I still want to know what would happen to any additional costs incurred in this situation?

JCS1

ric_flair wrote: »

They are not looking for money really, they are looking to make me stop competing against them. If they dont try and sue, I'll still be competing....

So what I still want to know what would happen to any additional costs incurred in this situation?

Any costs incurred after BR date would be yours, and could not be included in your BR.

How long is the restrictive convenant in place? And could you do something else until the time has expired?

ric_flair

JCS1 wrote: »

Any costs incurred after BR date would be yours, and could not be included in your BR.

How long is the restrictive convenant in place? And could you do something else until the time has expired?

When you say "after the BR date", you mean before or after im discharged?

I've had a legal team deal with the covenant restraint issue months back, I agreed to some undertakings, and now im being accused of being in breech of those undertakings.

They are going to try and sue for an event in the past, not whats happening right now (the restraint has expired)

JCS1

Any debts incurred after the date of the BR Order are your responsibility.

Mention to your examiner when you have your interview, but I suspect it can't be included even though the action which lead to it was prior.

Photo_Stylus

I would be tempted to let slip can they give you any paperwork especially any with figures on so that you can pass them to your official receiver so you can add them to your bankruptcy.

It may make them rethink, why waste effort if your not going to pay them a penny.

They may make their own search, Or may just drop it?