Friend going bankrupt, how doI ensure his debt to me is included?

John1993_2

I lent a friend a few thousand pound a couple of years back when he had urgent need, and he's failed to pay me back, while still managing to update his car, have a holiday etc. I'm not happy about it, but was not planning on taking legal action.

It now looks like he's going to petition for bankruptcy, as he has some other debts that he can't pay. Mine is the biggest he has, and it seems that as I'm a "friend", he'd prefer to leave the debt to me out of his bankruptcy.

I don't want this to happen, having been a friend of his should not put me to the back of the queue, but how do I ensure that he can't "forget" my figure when filling in his forms? I'll pass him a gentle reminder that he needs to include the debt to me in his petition, but if he doesn't do so, am I able to do anything about it?

Flyright

Yes, you can inform the Official Receiver's office dealing with his case that you are a creditor of his.

fatbelly

Keep an eye on the insolvency register

http://www.insolvencydirect.bis.gov.uk/eiir/

He will be listed on the site if he gets any form of insolvency

John1993_2

Thanks very much. Is there one official receiver per region, a general office of them I should inform,or will I need to know which court he's dealing with?

I hope that by mentioning to him that I want this debt included that no further action will be needed, but do want to be sure, as there's little chance of seeing anything back afterwards.

alastairq

It now looks like he's going to petition for bankruptcy, as he has some other debts that he can't pay. Mine is the biggest he has, and it seems that as I'm a "friend", he'd prefer to leave the debt to me out of his bankruptcy.

BAnkruptcy is one of the most powerful legal undertakings an individual can make.

Aside from allowing creditors to benefit from the realisation of the debtor's assets, BR is also all-encompassing.

Which means, regardless of whether a debt is recorded, or noted, OR NOT, it falls into that bankruptcy.

As above, you need to keep aware of what your friend is doing, and notify the Official receiver of your interest.

Action_Jackson

Does your friend work or have any assets?

Your debt is covered by the BR regardless of whether your friend mentions it on the BR forms. That's why BR is so public - so forgotten creditors become aware and can make a claim.

I'm not sure why your friend wants to keep your debt off the BR - he will be commiting an offence if he starts favouring you over other creditors while insolvent.


He should list you as a creditor to avoid any trouble. You may or may not get some money pro-rata along with the other creditors depending on his circumstances for a period of three years via an IPA if he has disposable income (he is still discharged after 12 months though).



If no IPA is made because he is too poor, then he's fully discharged of any obligations after 12 months with no payments made.


After that, there is nothing stopping him making good a debt owed to a mate that helped him out, regardess of whether BR says the debt is no longer owed.

fatbelly

John1993 wrote: »

Thanks very much. Is there one official receiver per region, a general office of them I should inform,or will I need to know which court he's dealing with?

Search "all courts /all offices" if you can - this will also pick up if he's gone for a DRO

If his name crops up, you will see who you need to report to.

dojoman

John1993 wrote: »

I lent a friend a few thousand pound a couple of years back when he had urgent need, and he's failed to pay me back, while still managing to update his car, have a holiday etc. I'm not happy about it, but was not planning on taking legal action.

It now looks like he's going to petition for bankruptcy, as he has some other debts that he can't pay. Mine is the biggest he has, and it seems that as I'm a "friend", he'd prefer to leave the debt to me out of his bankruptcy.

I don't want this to happen, having been a friend of his should not put me to the back of the queue, but how do I ensure that he can't "forget" my figure when filling in his forms? I'll pass him a gentle reminder that he needs to include the debt to me in his petition, but if he doesn't do so, am I able to do anything about it?

Are you hoping to get some of this money back?

John1993_2

Action_Jackson wrote: »

I'm not sure why your friend wants to keep your debt off the BR - he will be commiting an offence if he starts favouring you over other creditors while insolvent.

I think it's more the case that he'll expect me just to forget his debt to me, since he's in trouble with "proper" (I.e. To companies, not to an individual) debt. Which was acquired long after he borrowed from me.

My loan was for an unexpected, urgent need, at the time when he should have had no problem paying me back, so I'm not best pleased that years later he's left it outstanding, and I may end up with nothing.

John1993_2

dojoman wrote: »

Are you hoping to get some of this money back?

If there's anything to be distributed, yes. I'm more concerned not to be attached to even the merest hint of legal wrongdoing, or even the appearance of it, either as perpetrator or "victim". My job demands utter probity, and I won't risk even the chance of him claiming later that I was complicit in any decision to lie to the courts.

Action_Jackson

John1993 wrote: »

If there's anything to be distributed, yes. I'm more concerned not to be attached to even the merest hint of legal wrongdoing, or even the appearance of it, either as perpetrator or "victim". My job demands utter probity, and I won't risk even the chance of him claiming later that I was complicit in any decision to lie to the courts.

If you want a chance of getting your money back, just put your claim through to the OR, regardless of what your friend does. The OR will take it frome there. Nothing for you to worry about whether you do this or do nothing.