Weird letter from bank

Hanky3

Thirteen days into bankruptcy and things are pretty quiet. Still waiting to hear from OR, but rang them and apparently they are very busy. But I've just received this weird letter from one of my creditors and wonder if anyone can tell me if I should be worried:

Dear Mr Hanky3,

Following receipt of a bankruptcy notice your accounts with us have been frozen.

We demand immediate repayment of £XXXXX. This is the amount you owe the bank, including interest and charges.

No further action is required by you in relation to this demand.

As a defaulting debtor, details of your default including name and address may be given to Credit Reference Agencies. Credit Reference Agencies supply information to lenders in order to establish people's credit histories quickly and simply.

Please return your cards and any unused cheques to this office within the next seven days.

Customer Credit Services.


I understand the part about trying to scare me into paying as it will effect my credit rating (bit late for that now), but why are they demanding immediate payment when I'm bankrupt? Quite frankly I am absolutely skint and don't think I've got close to ten thousand quid hidden in the back of my sofa.

Cheers.

skylight

Don't worry about it.

It's a formal letter, some are sent and some aren't!


They are demanding payment from you but also state no action is due from you. It's just to put things in a formal vein. They are basically stating their "rights" to the money owed in case there is anything from your estate to make a payout.

Either forward it to your OR or bin it. But above all, ignore it.

Hanky3

Thought as much.

I was on a DMP for three years prior to bankruptcy and my creditors were supposed to leave me alone then... ended up getting at least four phone calls and a few letters every week. Doesn't surprise me at all they're continuing to contact me.

Just think its really cheap that they demand immediate payment and go on to say I don't need to take any further action. Almost as if they want to ruin my day and make me stressed.

Reckon the banks think everyone filing for bankruptcy is doing it for a bit of a laugh, when in fact everyone does it because they have no choice.

Weird.

debtinfo

Hi hanky, as skylight says they are just formerly saying that you have broke the terms of your contract. Prior to this the only amount due is the monthly payment, this just means that the whole amount is due, so say you won the lottery, the whole amount would be repaid rather than just the monthly payment that would have been due otherwise

stardust-girl

debtinfo wrote: »

Hi hanky, as skylight says they are just formerly saying that you have broke the terms of your contract. Prior to this the only amount due is the monthly payment, this just means that the whole amount is due, so say you won the lottery, the whole amount would be repaid rather than just the monthly payment that would have been due otherwise

Completely OT!: I've always wondered - if you had been declared bankrupt and then won a huge payout on the Lottery or were left a large sum (more than your debts) in a will etc. what would happen? Would you have to pay the debts even though you were already declared bankrupt? What if you were discharged? (This is a completely academic question btw!)

davemorton

stardust-girl wrote: »

Completely OT!: I've always wondered - if you had been declared bankrupt and then won a huge payout on the Lottery or were left a large sum (more than your debts) in a will etc. what would happen? Would you have to pay the debts even though you were already declared bankrupt? What if you were discharged? (This is a completely academic question btw!)

Cant answer your question legally, but I think morally a person should be made to pay.

tigerfeet2006

stardust-girl wrote: »

Completely OT!: I've always wondered - if you had been declared bankrupt and then won a huge payout on the Lottery or were left a large sum (more than your debts) in a will etc. what would happen? Would you have to pay the debts even though you were already declared bankrupt? What if you were discharged? (This is a completely academic question btw!)

When you declare bankruptcy you are legally obliged to inform the OR of any change in circumstances including lottery wins. The OR will take the money pay your creditors, pay himself and give you what is left.

JCS1

stardust-girl wrote: »

Completely OT!: I've always wondered - if you had been declared bankrupt and then won a huge payout on the Lottery or were left a large sum (more than your debts) in a will etc. what would happen? Would you have to pay the debts even though you were already declared bankrupt? What if you were discharged? (This is a completely academic question btw!)

It did happen to one person many years ago (a neighbouring OR's office dealt with it). Guy won lottery but was undischarged bankrupt. OR took money and paid off debts & OR fees and then paid over what was left to the person.