I've seen my Report to Creditors - this is what's in it

sieve

Hi all,

I hope everyone is alright - I've been lying low a bit lately as just waiting for things to happen, and have also been suffering whatever bug is going around too for a while so not been feeling as tip top as normal! So first I'm going to say welcome to the forum to the newbies, you have come to a fantastic place and I hope you easily get through whatever you may be facing soon.

Onto the point of the post - through some bizarre twist of fate I am actually friends with one of my creditors who was included in my bankruptcy. As luck would have it they agreed to send me what the OR sent to them - the Report to Creditors for my bankruptcy. It makes for interesting reading! Two points to this post really - to post up information on what it contains, and to also ask a question.

Basically it is sent to every creditor listed on the BR forms. Mine was dated about 3 weeks after my BR date and a few days after my phone interview. It lists my assets (including house but indicates mortgage shortfall) and then lists debts under various categories (it doesn't mention the names of individual creditors other than HMRC). It then states that because of assets against debts, there is not likely to be a distribution of funds to creditors, so the OR is not requesting a meeting of creditors.

In the notes section it mentions that I have a car and computer equipment, and that they are exempted as I need them for my job. The OR also then explains why they think I have gone bankrupt, based on the information they have. It's quite satisfying knowing that the OR can understand why I am bankrupt as there's no way they would have written what they have written if they didn't understand what caused it.

The report also says that the OR does not expect an external liquidator or IP to be appointed as the level of assets is virtually zero.

What is weird (and this is my question) is that the mortgage shortfall is also included in my list of debts (bringing the total to just over £80k). Since I intend to keep my house (although I haven't officially been offered the BI yet) it seems a bit weird that that's listed as a debt. I guess the OR is just covering their backs in case I do include it in the bankruptcy after they have done a distribution of funds when I've said I will not be including it. The question is, does that sound about right? I am hoping that the BI will be offered soon and that the house's presence in the debt list won't affect that at all.

Truth is I'm not sure whether I'll buy the BI anyway but that's beside the point

Anyway I've waffled on here but I hope that what I've posted above is helpful to people interested in what goes into the report to creditors. Any questions, feel free to ask away.

Cheers,

S

headoutofsand

Thanks for that Sieve, It's good to have some insight into dealings with creditors. I do often wonder how they approach creditors with reasons for BR. I put the blame fair and squarely at the door of one of mine, the OR agreed that I was more or less correct in my analysis, so I wonder how she approached the said creditor?

debtinfo

Hi the amount is intended to show all the creditors that could claim in the bankruptcy. The mortgage company could do this (although they would have to give up their security) and so they are listed

fiveyearplan

Thanks Sieve, for the insightful information.

fatou256

woah i have to say i wish i could see mine ! it is very insightful information and i do often wonder how my creditor have seen or reacted to my BR ...

dvs

Mine was very similar to Sieve's. A bit factual, almost like a school report. I saw mine because I listed a family member as a creditor. I very much doubt creditors waste time reading them though. They've lost money so probably wouldn't want to waste more money on going to meetings unless it was worth their while. Like Sieve, my report said there would be no meeting.