General meeting of creditors

brclub

Hi guys,

I've had a letter saying there's a general meeting of my creditors on March 29th and I can go... is it normal for them to have a meeting? And would you expect me to be invited? I don't think it's something I want to attend!!

debtinfo

Yes, if they are passing it to a seperate trustee (usually to deal with an asset) then they have a meeting of creditors where the creditors vote as to who the trustee would be, quite normal. Slightly unusual that it is a general meeting rather than a first meeting which usually means either, they are changing from one IP to another, a new asset has been discovered that was not declared earlier or more likely that the OR did not feel they had enough info to attract an IP when they sent the original reprt to creditors and now they have done a bit more digging they have all the details for creditors to have a vote.

You can go if you want to, you dont have to and most bankrupts dont. If you do go you will probably find that there is no one there as most creditors will vote by post or not at all, the date and time is really there mainly to give a deadline for responses

brclub

I phoned the company today, BDO, and I was told that my details were sent to them from the OR as the or doesn't deal with the br all the way to the end. I'm finding this all a bit strange as I don't have any assets as my house was repossessed nearly 3 years ago. I pay an ipa and when I spoke to the lady she said that they'd oversee the payments and that my br was quite a normal one. When you say the or doesn't have enough info to assign an ip, isn't the company they've sent it to the new ip? At the time of my br I didn't have the accoubt numbers for my creditors but I've since found them and will be sending them to the trustee along with the questionnaire and soa I've been asked to complete. I'm slightly concerned how this is all changing, most people don't seem to hear anything after their meeting with the or... why am I different? I've no house, car or other assets.

debtinfo

hang on, sorry, i forgot your last thread, who has sent the letter about the creditors meeting, is it BDO (i thought we were still at the OR stage so ignore my previous post) if it is BDO then it could be anything but it is most likely to simply set the trustee fees as that is the most common one.

Did you ask the OR why BDO were appointed?

brclub

It was BDO who sent the letter, I dealt with the or back in July. Couldn't get hold of or but spoke to lady at BDO and she said the reason it's gone to them is the or doesn't deal with it to the end and it was sent to them as a matter of routine. Does this sound right?

debtinfo

no that does not sound right, The OR will automatically be trustee in all cases until the end unless there is a reason for and/or the creditors vote to appoint someone other than the OR. Usually this is because of a significant asset but it does not have to be, sometimes if there is a significant creditor (ie worth a large proportion of the debt) they can choose a private trustee simply because they prefer them. However since the trustee can only get paid from the assets in the bankruptcy they usually only go for the good cases.

Did you have one creditor much larger than the others, perhaps one that is not a big bank?

the best person to ask what has happened is the OR

brclub

I'm home now and the letter actually says... "... I am convening a meeting of your creditors, primarily to appoint a creditors committee and to fix the basis of my remuneration". Does that make it clearer?

My BR was for itro £100k and I have a creditor, Picture Finance, who was owed about £50k. Would it be cause of them do you think? If I call the trustee will they tell me why I've got this letter and what they're actually doing? I'll try the or again tomorrow.

brclub

debtinfo wrote: »

no that does not sound right, The OR will automatically be trustee in all cases until the end unless there is a reason for and/or the creditors vote to appoint someone other than the OR. Usually this is because of a significant asset but it does not have to be, sometimes if there is a significant creditor (ie worth a large proportion of the debt) they can choose a private trustee simply because they prefer them. However since the trustee can only get paid from the assets in the bankruptcy they usually only go for the good cases.

Did you have one creditor much larger than the others, perhaps one that is not a big bank?

the best person to ask what has happened is the OR

Hi debtinfo. I've just spoken to the or and she's told me that the ip would've applied to take on my case as there might be assets they could deal with. I've told them I don't have any as such and shes said that the ipa is an asset and they basically want the money from that for themselves. I've called cdo and now waiting for a call from them to understand this second letter.

Does this all sound right to you? Are they likely to change my ipa?

Emmamumof2

Just reading the thread and wanted to ask about IP's if thats okay -
If there are no assets as such (I took the bits there were to the OR agent last week for valuation anyway), house in neg eq, car not worth much (if anything) over and above what's allowed if exempt, nothing else and I dont anticipate an IPA, would there be any point in an IP being appointed? I have one major creditor and wondered if this is any kind of possibility in my situation and what that means.....

debtinfo

brclub wrote: »

Hi debtinfo. I've just spoken to the or and she's told me that the ip would've applied to take on my case as there might be assets they could deal with. I've told them I don't have any as such and shes said that the ipa is an asset and they basically want the money from that for themselves. I've called cdo and now waiting for a call from them to understand this second letter.

Does this all sound right to you? Are they likely to change my ipa?

Generally a trustee (BDO) should not go back on decisions made by a previous trustee (the OR), in any case you have the same right if neccessary and cant agree, to take it to the judge to decide.

The second letter

"I am convening a meeting of your creditors, primarily to appoint a creditors committee and to fix the basis of my remuneration"

just means that they are deciding how much the IP will be paid, nothing to worry about

How much is your IPA?, whilst it is the creditors right to appoint who they want i cant see how they are going to make much money out of this?

debtinfo

Emmamumof2 wrote: »

Just reading the thread and wanted to ask about IP's if thats okay -
If there are no assets as such (I took the bits there were to the OR agent last week for valuation anyway), house in neg eq, car not worth much (if anything) over and above what's allowed if exempt, nothing else and I dont anticipate an IPA, would there be any point in an IP being appointed? I have one major creditor and wondered if this is any kind of possibility in my situation and what that means.....

"would there be any point in an IP being appointed?"

Probably not and they probably wont but a majority of creditors have the right to choose any IP they want instead of the OR, which is what has happened in the above case. Regardless they all have to work to the same rules as the OR