"Debts included in Bankrupcy"

Jonto_3

Richard_S wrote: »

Hi user55

Debts not specifically included in bankruptcy are:

1. Student Loans
2. Fines imposed by the courts
3. Maintenance payments to an ex spouse (I think)

Council Tax seems to be a grey area. Some posters have reported that their local authorities have pursued them even after notice of bankruptcy. Our experience was that any outstanding council tax prior to the bky date was written off; given that most council tax is paid monthly in the majority of cases it only amounts to one month, as it was with us.

Utilities can be a grey area. They can be included but posters have also reported that when they are the utility company insists on a meter system being installed, the most expensive way to pay of course. Our gas and electricity bills were due (well overdue) for payment and paid before our bky date so we didn't include them and the O.R never queried it.

You are obliged to tell your bank that you've been declared bankrupt but the O.R usually does this anyway. Some banks will let you operate the account post bky, others won't. If you open one of the basic accounts before bky they should not be affected. I had my salary paid into our daughters account before bky and then opened an new account after the date.

Hope this helps and the previous posters have answered your other questions.

Richard

Utilities bills up to the date of the bankruptcy will vest as a claim in the estate, same for C/Tax. Anything incurred after the making of the B/O is your responsibilty. C/Tax is also not chargable if the property is a bankruptcy asset and has been vacated.

Just for the record.

jobby_2

We have also had a major realisation that as we had had tax credit overpayment that therefore became a debt it should have been included in our original petition but we didn't include it cos we were just paying back overpayment. had an epiphany moment last week and realised it could have been included? Contacted Tax credit who said tough

Does this apply to anyone?

Jonto_3

jobby wrote: »

We have also had a major realisation that as we had had tax credit overpayment that therefore became a debt it should have been included in our original petition but we didn't include it cos we were just paying back overpayment. had an epiphany moment last week and realised it could have been included? Contacted Tax credit who said tough

Does this apply to anyone?

Just because you don't include something on your SOA doesn't mean it isn't included in your bankruptcy. On the date the B/O is made it crystalises your financial estate and anything that is outstanding whether you told the OR of not will vest in the estate.

Richard_S

Jonto wrote: »

Utilities bills up to the date of the bankruptcy will vest as a claim in the estate, same for C/Tax. Anything incurred after the making of the B/O is your responsibilty. C/Tax is also not chargable if the property is a bankruptcy asset and has been vacated.

Just for the record.

Absolutely right Jonto,

But if you include gas & electricity you'll pay throug the nose when they install a meter; one months council tax, unless you've got arrears and then the baliffs have probably already been around. People on here have had to go to court to prove they're not liable for their council tax; the rules are easy to learn it's how they're applied that's not.

jobby_2

Jonto wrote: »

Just because you don't include something on your SOA doesn't mean it isn't included in your bankruptcy. On the date the B/O is made it crystalises your financial estate and anything that is outstanding whether you told the OR of not will vest in the estate.

Does that mean its worth going back to OR and chasing it - our tax credit payments are low as a result of paying back the supposed overpayment and tax credit was cited by the judge as the main reason we went under

Jonto_3

jobby wrote: »

Does that mean its worth going back to OR and chasing it - our tax credit payments are low as a result of paying back the supposed overpayment and tax credit was cited by the judge as the main reason we went under

It's certainly worth raising the question that you feel they were "preferred" as a creditor but the test is was there desire to prefer.

The answer is no so it's unlikely you will get anything back.

Jonto_3

Richard_S wrote: »

Absolutely right Jonto,

But if you include gas & electricity you'll pay throug the nose when they install a meter; one months council tax, unless you've got arrears and then the baliffs have probably already been around. People on here have had to go to court to prove they're not liable for their council tax; the rules are easy to learn it's how they're applied that's not.

If a baliffs turns up, don;t answer door or open window. Go upstairs and speak to them from that window for starters. That is just general advice.

If you are bankrutp just show them the order. In fact, they don;t even need that, give them your name and court number and tell them to look on the Insolvency Registar. They all know where it is.

As you are bankrupt you are obviously having trouble with your finances and it is likely that meters will be a good SHORT TERM tool to help you budget.

Richard_S

All the other folks, thanks for the advice. I just want a idea what i would be entitled too as i am not really experienced in these matters. Thats all.


You've learnt an awful lot since some of your earlier posts Jonto.

Jonto_3

Richard_S wrote: »

All the other folks, thanks for the advice. I just want a idea what i would be entitled too as i am not really experienced in these matters. Thats all.


You've learnt an awful lot since some of your earlier posts Jonto.

Thanks very much. It's easy when i have an insolvency master like you teaching me

user55

I hadn't thought about the tax credit thing. Tis one of the large contributing factors in my situation too, when I first returned to work after having my baby, they paid me more or less 50% of my childcare fees. Based on what they said I was entitled to, that's how I worked out what hours I could work and what childcare I could afford. then they suddenly decided they were overpaying us and we haven't seen a penny from them since. Without doubt that was a major contributing factor in my "living on credit" situation. But since they just don't give us anything until the "debt" is repaid, it's not something I can clearly state on my SOA?

I have always said, I rue the day I applied for tax credits. I was OK till they messed me up.