How Would You Know?

SallyUK

If someone had made you bankrupt?

I keep getting threatening letters from a company who say that if I don't pay the outstanding amount, then I face being made bankrupt by them?

But if they did do this, how would I know?

Sorry, if this is a stupid question.

Sal
x

fermi

Not a stupid question

For a creditor to make you bankrupt they must first serve you with a 'Statutory Demand' which is a legal document, which you then have a set period to respond to.

Please read through this as it explains it better than I can:

http://www.insolvencyhelpline.co.uk/legal_issues_explained/statutory_demand.htm

And in particular this:

Please note that a statutory demand in 90% of instances is 'bluffing technique' used to scare a person into paying up. If a bankruptcy petition does not follow then this will become apparent.

In other words the threat to make you bankrupt is very likely to be an empty one.

SallyUK

Thank you Fermi. That link was helpful.

However, if someone doesn't respond to the statutory demand, and there is a bankrupty petition - how would I know, would there be something sent to me?

Would they have my bank account closed or anything before I found this out?

Sal
x

fermi

I'm not sure, but if you failed to respond at every stage of the court process then I think they could. Others, please correct me if I'm wrong. However you should get notice from the court.

Why would you not want to respond? From the link you read you should have seen that as long as you always respond reasonably and within the correct time to both the creditor and the court, then it is very difficult for them to make you BR.
It may seem a strange concept but the law and legal system is also there to protect you in these cases.

If you are still concerned, I would suggest seeking some proffesional adice on this matter.

You can contact:

Insolvency Helpline http://www.insolvencyhelpline.co.uk/
CCCS http://www.cccs.co.uk/
and local CAB office asking for a 'money advisor'

EDIT: Rog2 is the one who knows all about this because he was made bankrupt by HMRC. He only posts at weekends though, because of his work I think.

Richard_S

fermi wrote: »

I'm not sure, but if you failed to respond at every stage of the court process then I think they could. Others, please correct me if I'm wrong. However you should get notice from the court.

Why would you not want to respond? From the link you read you should have seen that as long as you always respond reasonably and within the correct time to both the creditor and the court, then it is very difficult for them to make you BR.
It may seem a strange concept but the law and legal system is also there to protect you in these cases.

If you are still concerned, I would suggest seeking some proffesional adice on this matter.

You can contact:

Insolvency Helpline http://www.insolvencyhelpline.co.uk/
CCCS http://www.cccs.co.uk/
and local CAB office asking for a 'money advisor'

EDIT: Rog2 is the one who knows all about this because he was made bankrupt by HMRC. He only posts at weekends though, because of his work I think.

Hi fermi,

You are correct, we were petitioned by a third party and you get every opportunity to respond to the Statutory Demand and then the Petition for Bankruptcy. One of the documents was actually served on us personally but I can't remember which one.

The most frequent reason for being declared bankrupt without you knowing is if you're working abroad and haven't left a post redirection or forwarding service. I think there have been instances where people have moved house and not registered on the Electoral Roll and the documents have gone to the last known address, but I think these are quite rare.

Richard

fermi

Hi Richard,

That's good to know.

I thought that you bailed out yourself rather than had a creditor petition?
Must have misread something.