Bankruptcy Petiton - the rules, implications and implementation?

djsunset_2

I had a bankruptcy petition served on me recently, however the name on the petition was incorrect: they had my middle name completely wrong, putting a name which I have never had or used. Would this invalidate the petition and bankruptcy order if one was made? Would it mean that a non-existent person was made bankrupt, or will I be viewed myself as bankrupt?

This is a debt that I can afford to pay but do not wish to pay on principle.

Also, if a bankruptcy order is made, how is it actually implemented - by what means will they take control of your assets. If I do not attend the petition hearing, co-operate or communicate at all, how do they go about it? Can they stop/take control of your bank account without your co-operation - i.e. might I find myself unable to withdraw/transfer funds from my accounts, some of which have my actual full name (with real middle name) and others just my first name and surname (no middle name).

debtinfo

Hi, it may invalidate it, but that would just mean that they would go and refile just might take a bit longer. It wont stop it in the long run.

If you do not co-operate you will basically just be made bankrupt indefinitly. The Official Receiver will investigate and can close any accounts and seize any money they find, it will be advertised so that all of yur creditors can come forward and the banks will hand over any financial info the have on you. The OR can get records from the DVLA for vehicles and the land registry for properties. They can request if they know where you are that you b arrested and brought to court to answer questions.

You say that you will not pay over principle, is that a legal one such as payment for a job not done correctly or a personal dispute

djsunset_2

Hi, thanks for your reply.

Would an incorrect middle name definitely invalidate it? And if my bank accounts did not use that incorrect middle name, but only my first and surname or my real middle name, could I prevent the Ofiicial Receiver from interfering with those accounts on that basis, e.g. by showing my passport or driving licence with correct full name.

If it was refiled with correct details, I'm assuming they would have also to serve the statutory demand again with correct details, and I would apply to have it set aside. If this application failed, I guess I would be forced to pay, but there's a fair chance it could be set aside. Anyway, I do not want to respond to the document with incorrect name, I want to delay things as long as possible to see if they bother to continue to pursue it.

debtinfo

not defo, because as long as they have the correct person (ie the one that owes the debt) the OR can apply for an ammendment of title and carry on realising. To get the OR to stop you would have to o to court and show that you are not the person who owes the money, which i presume from your post you are

djsunset_2

and this being the case even if the incorrect name was also on the original stat. demand? Would I be able to argue that I did not contest the demand because the name on the demand was incorrect and it was not served on me personally? And that I would choose to apply to set aside the demand if re-served.

Also, is the court ordering bankruptcy 100% guaranteed if i do not contest it or show up at the hearing. And, after the bankruptcy order is made, can I have it annulled (as if it never happened) if I choose to pay, and what is usually the approximate cost of this?

debtinfo

Possible but as it is served to your address with two parts of your name correct then you might have difficulty convincing the judge that you did not honestly know that you were being served.

generally the judge will grant the order, The stat demand shows that the debt is due and if you have not paid it within the time specified then you have not paid a debt as it fell due which is what the judge will rule on.

ff the Order goes through then to get it annulled you must pay the petition debt, all other debts in your name, the petitioners costs and the insolvency service costs. which is going to be costly

why is the debt in dispute

djsunset_2

It's complicated, but basically I lost money on some financial trades as a result of this company's incompetence and, I believe, deliberate foul play. But they have their terms & conditions etc. which are supposed to cover this.

I can't make my mind up what to do. I want to wait until after the hearing and try and use the incorrect name argument to invalidate the bankruptcy order or not co-operate with the OR. If this doesn't work, I would pay the alleged debt and try to annul the bankruptcy. My only other creditors are mobile phone contract and 1 credit card, both paid in full every month. What is the estimated total cost of annulling a bankruptcy (1 petitioner), excluding the alleged debt of course? i.e. what do you mean roughly by 'costly'?

debtinfo

The OR costs are likely to be about £1500, the same for the petitioner costs. Then you dont have to but may wish to employee your own representation which may be another £1,000

all this is only my estimates of course.

Just to point out that if you do not co-operate with the OR then an annullment will not be granted, The OR will have to confirm to the judge that all measures have been taken to ensure that you have no other debts, also you will not be able to use your own money to pay for all this as you will nt be in control of your money. You have to have someone else pay and you repay them when you get control of the finances back.

so if you can avoid it, it best to not let it go through in the first place.

Once the Order has gone through then they will not be interested on investigating the circumstances of the debt for your purposes. If you dont owe it the time to fight the debt is before the bankruptcy order.

If you put aside personal feelings for a moment and the unfairness issue, do you think that legaly you owe the debt or not and if not can you prove it

InnerPeace

djsunset wrote: »

I can't make my mind up what to do. I want to wait until after the hearing and try and use the incorrect name argument to invalidate the bankruptcy order or not co-operate with the OR. If this doesn't work, I would pay the alleged debt and try to annul the bankruptcy.

I seriously wouldn't recommend that. The incorrect name argument will hold absolutely no water, Bankrupcty Orders regularly have names incorrect and they just get amended after the event. If you make pay up at the time of hearing you risk paying the Petitioning Creditors costs which may be hight...this isn't the same as the OR's costs on annulment, this will be all the legal costs of serving the Stat Dem and applying for the Order. I think it's best to get legal advice or file a defence to the Stat Dem now if possible.