Written off Debts?

flis21

I am really confused now, I thought bankrupcty wrote off all my debts? Are you saying that I will still have to pay them? That will take me years and years. Particularly if they add 8% to them.

Not including my husbands debts and my student loan, my own debts stand at over £27,000 so if they add 8% to that, I will have to pay back over £29,000. At £40 per month that would take me until forever to pay. Quick calculation - 60 years!!!:eek:

Help

flis21

Also, we don't have any assets, no car, no house, no expensive posessions. I understand that I am allowed to keep things like my washing machine and telly.

tomterm8

flis21 wrote: »

I am really confused now, I thought bankrupcty wrote off all my debts? Are you saying that I will still have to pay them? That will take me years and years. Particularly if they add 8% to them.

Not including my husbands debts and my student loan, my own debts stand at over £27,000 so if they add 8% to that, I will have to pay back over £29,000. At £40 per month that would take me until forever to pay. Quick calculation - 60 years!!!:eek:

Help

The bankruptcy estate - and the debts owed to it - are legally different from your own.

When bankruptcy is declared, all your debts are added to the estate. You do not owe anything.

While you are bankrupt, you must pay what you can to the bankruptcy estate. When the bankruptcy is discharged (normally 1 year after the bankruptcy hearing), the OR can force you to enter into an agreement to repay some more of the bankruptcy estate that can last up to 3 years. This is unlikely if you are on benefits throughout your bankruptcy. The repayment terms of the agreement are generally more lenient than the bankruptcy itself.

At the end of the 3 years, or immediatly on discharge if the OR doesn't impose the agreement (very likely in your case), any remaining debts to the bankruptcy estate are written off in full - except for any charges on your property existing before the bankruptcy that the OR has placed and not dealt with yet.

You can never be asked to pay benefits to the bankruptcy estate, or to pay so much you are unable to sustain your family.

chevalier

Hi there
It may be that you other creditors don't use Experian. I think the other company is Equifax? Not sure if the name is right. But I would definitely talk to the CAB to see what they say
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