Reclaiming charges, but bankrupt (merged threads)

scarecrow_2

Do you lose the right to claim back your bank charges after declaring yourself bankrupt ? I did this last year after Lloyds took upwards of four thousand pounds from me in about 2 years in charges. Though it's probably not relevant their charging policy was responsible for me getting myself in such a mess although i asked several times they refused to freeze the charges which would have got me back in to the black within a few months, their charging me was incuring more and more charges.

I know i am clutching at straws but it seems that they were taking money that wasnt theirs, illegally, which left me unable to fulfill my obligations which incured more charges if you know what i mean it was win win for them and lose all the way for me.

swa65

Hi there, first time on the forum. Is there anyone out there that can answer whether I can Claim my bank chargers back from a bank that I was with when I was made bankcrupt?

DavidHM

To those who are criticising people seeking to reclaim bank charges having gone bankrupt:

Some creditors will have been entitled to the whole amount of their loss. Others will have made unfair charges on the bankrupt which, whilst they may not have caused the insolvency may have pushed them towards bankruptcy as opposed to an IVA.

Even if they didn't actually cause the bankruptcy, if someone goes bankrupt over £16k with assets of £5k, of which £3k is unlawful charges, creditors who haven't made unlawful charges are only getting back 31p in the pound instead of 38p.

Further, if someone were in a position to pay their way out of bankruptcy, why on earth should they not be able to offset any debt that was unlawful and not actually owed?

I have moral concerns about "easy" bankruptcy but the bank charges issue is separate. Otherwise unlawful charges would just be a way for certain creditors to take precedence over others.

anniemint306

Has any one got a success story - or is going through the reclaim process on a bank account they held prior to bankruptcy?

I had an account with the Royal Bank of Scotland for many years, but when I got in to financial difficulties, eventually filing for bankruptcy in Dec 2005, they were one of my listed creditors. Although I was able to proceed with bankruptcy, my RBoS account was not closed for sometime, and they were still issuing interest charge notices on the account until April 2006.

In the 12 months leading up to bankruptcy many of my bank charges were horrendous (in particular, one week in August totally more than £200.)

I would like to try and recoup some of these - but would hate to waste my time, if I'm unable to because of their status as a creditor.

My bankruptcy was discharged early - in June 2006.

benjamina_2

Can anyone tell me if the information i have heard is true. Can you claim against an account that was closed due to bankruptcy ?

gillian2001uk

Hi there, I am looking for some advice. I was declared bankrupt in May 06, but prior to this incurred loads of bank charges...... am I still able to reclaim for these? Wasn't sure what to do.... any advice would be great!

gillian2001uk

I can't believe what i am reading!

You are bankrupt!

You got to the point where you couldnt pay back your debt!

They wrote off a whole host of debts (or partially and set up a payment plan)

And you want to claim the charges back? Hello? Am I the only one who thinks this is mad?

You didnt pay back what you borrowed, So why do you think you are entitled to the charges the bank / creditors put on your debts because you couldnt pay them?!

Example, you borrow £10 and are told if I dont get it back by Friday you owe me £15. You dont pay, you say you CANNOT pay... £15 is written off in bankruptcy. I get informed you are going to pay me £1 a week for 8 weeks, so i only get £8 back. You then decide you want to claim the £5 back that I charged for the £10 in the first place? Huh? Are you serious?!

Unless 100% of what you get back goes to the people you owe money to then i think this is disgusting...


In reply to this... my bankruptcy is due to an ex partner, who ran up bills in our joint name which I was not aware of....... until we split up and he declared bankrupted immediately....... I struggled for five years trying to pay a bit towards each debt, which as you will already know, gets you no where.... my last resort was bankruptcy!!!! i find it hard for you to say its disgusting, but I struggled on my own with my son for five years trying to keep my head a float, I think you are a bit quick of the mark to say it is disgusting....... I would love to be able to claim back and be discharged from bankruptcy, but am not sure how this works at all.....

saintly_2

my ohh parents are soon to be discharged from bankruptcy, they have been asking me about how i'm doin and im just wondering, can discharged bankrupts claimed the charges back from accounts that have been closed.

they had 2 business accounts which closed wen they went bankrupt, can charges be claimed from these

any help would be apreciated

xx

uffa56

my son left uni a couple of years ago wiyh debts .these have spiraled out of control that he made himself bankrupt last year .can he claim back his bank charges?

deedee2665

uffa56 wrote:

my son left uni a couple of years ago wiyh debts .these have spiraled out of control that he made himself bankrupt last year .can he claim back his bank charges?

Interesting one this. As I understand it, your son could claim the bank charges back, but would have to give any money he recieved straight to the court to go towards repaying the debts off. I could be wrong, but I think it works that way. It's like if you're bankrupt and win the lottery, you have to apply to the court to have the bankrupcy discharged, and pay the original debt off, then the remaining money is all yours. If the total charges are less than the amount of debt your son had built up prior to bankrupcy then you may want to wait until the bankrupcy is discharged by the court before claiming (usually three years I think). I could be wrong about this, so don't sue me if I am lol.

Hope everything works out ok for your son, it's a horrid situation for anyone to be in, but there is a light at the end of the tunnel.

Take care, Deedee x.