Bankrupt owes money?

aakayb

I have a friend who was bankrupt about 15 years ago. Creditors have recently written to him demanding money. How is this possible? I thought all debts were cleared when someone is declared bankrupt.

Willsnarf1983

yeah but he could have racked them back up again

Will

aakayb

No they are definately from before he was bankrupt.

saubryn

Is it possible that the creditor lost touch with him before he got declared bankrupt, and he did not include the debt in the bankruptcy?

I don't know much about bankruptcy, or what the rules would be in that case, but I'm sure someone else with more knowledge would be able to advise.

was_bankrupt

Creditors may well write to your friend. If the debts were included in the bankruptcy maybe they just need to be informed of the bankruptcy. Sounds like it may be worth your friend getting advice and writing to the offical receiver.

rog2

If the debts are more than six years old and the creditors have not been in contact, then the 'debts' should come under the 'statute barred' umbrella, regardless of your friends bankruptcy.
However, it's also worth checking whether these alleged debts were declared at time of BR. I understand that if a debt is not declared at bankruptcy, then the creditor may pursue it in the normal way.
I am sure that one of the more legally gifted DFWs will be along soon to give you better advice.

Dr.Shoe_2

If the debts are more than 6 years old they have no claim.

blissfulbabe

Apart from a very limited number of debts (student loans & court fines are the only ones I can think of) all debts are included in bankruptcy. It doesn't matter if the debt was declared at the time or not - the reason bankruptcies are printed in the London Gazette and the local rag is to give all creditors the chance to make a claim with the OR - if they don't then it's their tough luck.

The DCA has probably bought the debts as part of a job lot and are just trying it on. Your friend could send them a letter with the date and number of his bankruptcy and point out that the statute of limitations apply in this case (eg it has been more than six years since he has paid towards or acknowledged the debt). There is a cracking letter floating about with this info on it.

Either way - providing the debts were accrued before you friend's bankruptcy - he is protected by both his bankruptcy and the statute of limitations and has no need to worry about this anymore.

He should also point out to the DCA that it is unlawful to ask a bankrupt to pay towards a debt that accrued before the bankruptcy and if they contact him about this matter again he will report them to OFT and Trading Standards!;)

Let_Robinson_Sing

are they Child maintenance or benefit overpayment debts?

These aren't inclued in bankruptcy either.

If your friend has paid part of the debt and not included in his bankruptcy and has been discharged he is still respondible for the debt as he has acknowledged it.