Bankruptcy, Voluntary Surrender and Utilities

Stephabee

Hi folks, wondered if anyone could help or had experience of this...
I was declared BR in June 2009 and gave the keys of my property back to Northern Rock at around the same time. The house has been empty until very recently.

I have now received a demand from a credit collection agency for the gas and electricity used in the property after BR and after voluntary surrender when the house was empty. They will not budge and say I am liable for over £400 of gas and electricity usage! I was under the impression everything fell to Northern Rock after voluntary surrender but the collection agency say this only happens when a court order is made and not when you do it voluntarily.

I can't find any information out there, only what the collection agency are telling me. I would be grateful for any advice or experiences others have had. Simply can't afford this amount of money! Surely if I gave the keys back I can't be liable - Northern Rock could have moved anyone in there (although evidently they didn't!)

Many thanks for any advice...

Steph

Tupperware_Queen

did you take meter readings when you handed keys in?

Stephabee

Thanks for replying!

Yes I did take readings - I was very careful about doing everything by the book - but they don't seem concerned about that. They are saying that until the house was sold, I was responsible for utilities.

I have the letter that exempts the property from Council Tax as well but they still claim I need to pay. I am not sure of my position at all!

BB&B

These are ALWAYS a pain to sort, but if the property was vacated PRIOR to the bankruptcy date AND the key had been returned, then the bills fall within the bankruptcy. If this is the case invite them to take this to court (where they will lose very badly and you will stand a chance of obtaining costs against them)

If the property was vacated PRIOR to bankruptcy, but the keys had not been handed over OR the property was still in occupation after the bankruptcy date, then you are liable for all debts POST bankruptcy date. In which case you need to deal with them, but ONLY the portion post bankruptcy date.

If the first paragraph applies then I would suggest that you contact the collectors, inform them that you want their complaints procedure as you are going to make a formal complaint on the ground of harassment and deception as you have had it confirmed by the Offical Receiver that there is no liability.

Tim

Stephabee

Thanks so much for replying but just to clarify... the house was still occupied after bankruptcy for a short period of time. The house then stood empty until it was sold. What the collectors want paying for is the period (of about a year) when the house stood empty. I have paid my bit of post-bankruptcy bills up until I gave them final meter readings on the day I left. Am I still liable for the rest of that year then, before the property was sold? I have a sinking feeling that you are going to say yes

Steph

BB&B

When you leave a property that is going back to repossession, it is up to you to have the utilities CLOSED* down, that is they should physically come out and shut them off.

If you don't do this then, you can be liable for any and all costs until the property is sold.

Just moving out and telling the utilities that you have handed it back to a mortgage company doesn't count until, as they say, there is either a court order or letter from the mortgage comapny accepting liability.

The same applies with Council Tax, which you remain liable for, but you can get an exemption on, unfortunately utilities don't normally give the same exemptions.

Sooooooooooooo, and I loath to say it, it appears as if you are liable for these bills!

Sorry

Tim

*Closed down means:

Electric - The Electric Company comes out and removes the master fuse.
Gas - The Gas company comes out and caps the supply.
Water - The water company normally agree a cut off, they really actually cut the water off

silvercar

They will not budge and say I am liable for over £400 of gas and electricity usage!

If the property was empty and the utilities turned off, even if not closed down, that is a hell of a lot of usage for an empty property!

Tupperware_Queen

I've asked for advice from the company reps on the utilities board on this one.

Tupperware_Queen

I second what Tigerfeet said

MicheH

You know the letter Northern Rock sent you to tell you they had officially taken possession of the house? You need to send a copy of this to the utilities company. You are liable for any 'usage' (leaks etc) up until this point (I was lead to believe anyway) After the date of the official repo it's down to NR.

From experience NR don't let the utilities company know they're in posession of the property so the utilities won't know, even after you've moved out it's still your house (and responsibilty) until they have legal possession.

Hope to help and for what it's worth I didn't have to pay any bills once it was cleared up