General Meeting of Creditors?

David_F

Hi All,

I am looking for some advice.

I have received a letter today from my OR stating that they are holding a General Meeting of my creditors at the end of this month. I went BR in early March of this year and so far all I have heard from my OR is that my car and pensions are exempt of my BR.

The letter states that I am NOT required to attend so what is the purpose of this meeting?

The only remaining asset that has not yet been dealt with is my house. The OR wrote to me back in April asking if I wanted to buy back the BI and to send in a valuation and mortgage redemption statement. I submitted a surveyors valuation and a redemption statement that showed a negative equity of £300 and expressed my wish to purchase back the BI ASAP. Since then I have heard nothing until today.

Should I be concerned by this recent letter or is it all just a standard procedure in the process of my BR?

Many Thanks in advance for any help/advice offered.

David

dancingfairy

Is there a business involved at all? or is it just a personal bankruptcy?
I don't know the answer but hopeully one of the experts can help you - I know business bankruptcies can be different though.
df

skylight

Its standard; dont worry. Basically the OR will tell them the outcome of the investigation etc and if they are going to realise any monies from your BR estate.

I dont think many creditors will actually bother to turn up though. Don't worry about it.

JCS1

Creditor meetingss are usually called to appoint an IP to act as Trustee rather than the OR. Is the amount of equity in dispute?

David_F

Hi All,

Many thanks for the quick replies. In answer to the points raised:

The BR is a personal one - no business involved.

As far as I know their is no dispute on the valuation. When I was asked to suply a valuation I do so and submitted it to the OR. It was carried out by a reputable and registered firm of Chartered Surveyors but I never had a reply to my request to purchase back the BI.

One other point I should mention is that I managed to get a copy of the original creditors report produced by the OR back in May of this year. (I got a copy as my parents were named as unsecured creditors). In this report the OR explained the reasons for my BR (basically living off credit after a long period of unemployment) the only asset was my house which they stated in their report had no equity and that they did not envisage any creditor receiving any monies from my estate. It also went on to state that they did not intend to call a creditors meeting, so why call one now?

Is it as Skylight stated that the OR is just following legal procedure and will inform the creditors that they will not get any monies from my estate?

Thanks again to you all for your help.

David

JCS1

They usually only call a meeting of creditors to appoint an IP if there are assets over £10k, so I don't know why they are calling one now (though there are many other reasons why they can be called)

Might be worth phoning the OR's office on Monday just to find out why.

debtinfo

The OR may not have requested it. Any creditor with 25% or more by value of the debts can request that a creditors meeting be called to appoint a seperate trustee. why they woud want to though in this case is beyond me

David_F

Hi again,

I have spoken with my OR this morning and apparently the OR has called the meeting of creditors because he was unable to attain all of the creditors agreement to my valuation of the house. It was always the OR's plan to accept my valuation of negative equity but apparently 1 creditor has appointed their own insolvency practioner and had a drive by valuation done and therefore do not agree with the negative equity valuation. To ensure fairness the OR has called this meeting to enable the creditors to vote on the OR's plan or to appoint an insolvency practitioner.

This is not good news as far as I can see and I am now really fed up as I thought after 6 months I was coming towards the home stretch.

What does it mean if they appoint an insolvency practioner, do I have to go through the whole process again of being interviewed and having the ins and outs of my finances being picked through once more as I thought I had put all that behind me.

What I don't understand is that my valuation for my house was carried out by a chartered surveyor and it showed a negative equity of a few hundred pounds. If this creditors drive by valuation is much higher what is the process I will have to go though.

I am really upset by this as I researched my options to death before deciding on BR and no where did it say that the creditors could be appointed as trustee if they didn't agree with the OR's decision.

I feel like i'm right back at square one and my creditors are still able to give me a kick and squeeze every last drop of blood out of me, even in BR.

debtinfo

They wont go back over everything and you should not need to have another interview, that is and always stays as the OR's job. The trustee is there solely to deal with assets, at the end of the day it is their choice who they sell it to but they are notlikely to get a better offer if they repossess