Made bankrupt by Lowells

saschia

Hi everyone. I would really appreciate some help.

Yesterday I received an Insolvency Pack in the post stating that I am now bankrupt from Lowell !!! I have NEVER had any correspondence from them apart from many many automated phone messages which i ignored as they were asking me to provide data about myself which I wasn't entirely sure was legitimate to ask on a phone message/call.

So, the way things stand is I am now bankrupt for 3x debts that Lowell have presumably bought -
£250 to 3 Mobile
£6,500 to a catalogue
£3,000 to a credit card, Vanquis

When I originally defaulted on the Vanquis card and catalogue it was due to either paying these or paying my mortgage as my circumstances changed and could not afford both - I chose to keep paying the mortgage.

I initially liased with the creditors and made offers of payments - albeit only £10pm each to begin with - but both companies refused.

I stopped making the payments shortly after the phone calls and letters kept on coming about issuing a CCJ. I figured I would rather it go to court and make an offer of payment that way.

I can't remember the facts really with 3 Mobile, except that there was an issue with the contract or something and I felt that I had been misold the contract which turned out to be different once the time had elapsed to cancel. No amount of arguing or reasoning with 3 Mobile was effective so again i waited to hear from the courts regarding a CCJ etc.

This was all in 2010 approximately.

My husband was sent a Statutory Demand last year for his vanquis debt that Lowell had again purchased. Shorthly after this a further letter came in the post stating that the case had been dismissed - no reason why. We have not heard anything since either.

Then today I am told that on 19 June 2013 I was made bankrupt.

I am really worried what could happen and the fact that I could lose my family home and everything because of £9,000 - I am not insolvent in any other way and had the appropriate CCJ etc been submitted I would have been paying, let alone the fact that I was paying but it wasn't enough to please the original creditors.

I have today looked on my credit file - first time in years - and it shows Lowell as the creditors for the debts, not the original company, although the details of the original creditors are still on the info too. Also I have had numerous searches for an enquiry from Debt Agencies .... why would they be doing this and surely it should be in the form of an Audit, not an Enquiry

I have read in places about Notice of Assignments and Novations - I have never heard of either of these before so certainly have not had these issued to me.

Will I be able to get this bankruptcy annuled/cancelled - I cannot prove that I did not receive any documents, how can anyone prove that????

Please help if you can - it will be a long wait til Monday for me to be able to speak to anyone regarding this

debt_doctor

Hi,

Firstly I presume that BR will be detrimental to you regarding, assets, income or other matters?

Secondly I presume that you have checked the insolvency register to make sure you are actually bankrupt - and / or checked the London Gazzette.

Be under no illusion that to stop (annul) a BR is difficult to achieve and you must not waste one day in making things happen - if you can afford it get advice from a specialist insolvency solicitor / IP.

From the IS website........

5. Bankruptcy order ought not to have been made
Where there is an application to annul on the grounds that the bankruptcy order ought not to have been made, the applicant only has to give the official receiver (and any trustee) sufficient notice to allow them to attend the hearing. An application for annulment on the grounds that the order ought not to have been made, is essentially a dispute between the debtor and the creditor. The bankrupt must, therefore, inform the petitioning creditor of such an application.
Examples of why a bankruptcy order should not have been made are:
a. that the proper procedures involved in obtaining the order were not followed
b. where the debt to the petitioning creditor had been paid in full prior to the date of the hearing of the petition, when the bankruptcy order was made
The official receiver will not normally make a report in these circumstances unless it is considered that the conduct of the bankrupt should be reported to the court, but will attend or be represented at the hearing to ensure that if the application is granted, provision is made for the payment of the official receiver’s costs.

So you need to set aside the BR order on the grounds the order should not have been made. The quickest / cheapest way to do this is to apply on a N244 at a cost of £80.

Some procedures should have been followed such as;

You should have been served a Statutory Demand (SD) (unless a judgement was already obtained and enforcement of that CCJ attempted). SDs can simply be 'served' by 1st class post to last known address. It is deemed your responsibility to keep your creditors informed of your whereabouts.
If SD is not set aside then creditor can proceed with the Creditors Petition (CP).
The CP must be served personally upon you (ie handed to you) unless the creditor explains to the court that they cannot find you then the court can order ' substituted service' in which the court defines what the creditor has to do for the CP to be served correctly.

Here possibly lies a defence. Did Lowells know your whereabouts and / or could they have reasonably found out your whereabouts? Could you provide evidence that they knew where you lived/ worked but did not fully attempt to serve the CP?

Only firm evidence will do - waffling to the court will only result in a waste of £80 and you remaining BR with all its consequences.

So do you have provable evidence to give to the court that Lowells could reasonably serve the CP?

DD

saschia

Hi....thanks for the quick response and reply.

I have lived in the same property for 10 years, I am on the electoral role etc etc, I have at no point had anyone out to the house giving me papers, or anyone asking for me at my address - there are 5 other people living here.
When my husband had a petition sent originally it was by normal post - also the dismissal that came through for him was by post. Of which I have kept and therefore I would not have disregarded my own SD or CP if I didn't my husbands?

saschia

also..... in regards to checking the Insolvency Register - this was updated within 48 hrs of the BR to show I am bankrupt, I have not checked the Gazette. The bankruptcy was only passed on 19 June 2013.

Also, I am not insolvent, I have a mortgage with up to date payments and no defaults, my husband works although I do not. We have alot of equity in the joint property

debt_doctor

Ok, so it looks like you have good reason to set aside on the grounds the order should not have been made.
But this may put the CP back on the table and allow you to defend. The District Judge only needs to know two things to stamp the Bankruptcy Order;
1) that you owe the money (debt legally yours, not Statute Barred and otherwise enforceable)
2) that you are insolvent - you cannot pay your debts as they fall due.

So if you successfully set aside you will still (unless the court dismisses the CP) still have to defend the CP.
Instalments offers are not normally allowed to be to defend a CP unless over a very short time - perhaps 3 months.
You could offer a voluntary charge over your property or borrow money / offer reduced settlement to Lowells.

If you wish to start the process, download the form N244 here;

http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n244-eng.pdf

DD

debt_doctor

saschia wrote: »

Also, I am not insolvent, I have a mortgage with up to date payments and no defaults, my husband works although I do not. We have alot of equity in the joint property

I didn't see this post before my most recent post. Thing is, the debts Lowells petitioned for will have gone in to default long ago, so the full amount is now due - so if you manage to get to defend the CP then to pass the i'm not insolvent test you would have to show that you could clear this debt in full.

DD

saschia

Thank you so much for all your advice and knowledge.

I am very grateful.....
I will phone the OR tomorrow and explain that I am going to ask for it to be annuled and take it from there.

Also, is it normal practice that they have still be constantly ringing and leaving messages chasing the debt/payment and yet all along they knew they were going to bankruptcy?

Does not make sense to me.

debt_doctor

That doesn't surprise me of Lowells, they will keep trying anything and everything to obtain payment.
Also another way to annul a BR is to pay all of your debts (not just Lowells) and costs. Costs start to mount very quickly in BR so if this is an option, sooner the better - obviously for most people it is not an option.

For filling out the N244, you need to number your paragraphs starting with;
1) I apply for a set aside of the Bankruptcy Order made against me [your full name] on [date] in [name of court] on the grounds that the Order ought not have been made, due to the following;
Then short numbered paragraphs outlining the facts that you have lived at the property for 10 years, Lowells had your address, no SD received, no CP personally served etc.

Also enclose (attach) evidence to support your claim.

Good luck, post back for further help.

DD

saschia

Hi. PLEASE HELP WITH SOME ADVICE.

I was wondering if anyway may be able to help where I might stand now that I have further info on the previous posts I wrote about a bankruptcy I knew nothing about.

Apparantely the petition was made in October 2012, a court date was set for 14 February 2013 - I was unaware of this.

BW Legal (Lowells) had the bankruptcy adjourned as they stated they could not serve me petition papers as they could not find me???? I have lived at my address 10 years, do not work and only really go out to go shopping.

A Sub-Service was agreed by the courts and the letter was 'according to the courts clerk today' delivered through my letterbox on 04 May 2013 and an affadavit has been signed to this effect by a Process Server - I have not had this letter.

The new court date was set for 19 June which I knew nothing about and hence I am now bankrupt.

Where do I go from here??

debt_doctor

You do exactly as I suggested and put the extra information you have found on to the N245.

You must act fast.

DD

saschia

should I get a solicitor or is it somethiing that I can successful carry through myself do you think?