Now Bankrupt - Recieved Default Notice

mufs2k

Hi
I have been made bankrupt (via my own bankruptcy application) and have recently spoken to my Trustee for an initial interview, answering any questions they had about my application and so on. The bankruptcy has already been granted and I am on the Register of Insolvencies.

Shortly after speaking to my Trustee, I received a letter detailing my bankruptcy, which read like a letter to me creditors. I assume they sent me a copy of the letter they would be sending all my creditors.

Today, one of my creditors has issued me with a default notice as I have been made bankrupt (that is the reason, they say it breaches the credit agreement with them, which I understand as obviously I expect all credit to be withdrawn)

However it says I should be aware that if they take me to court, I will be liable for the balance plus interest. Can they do this or does Bankruptcy protect me?

Also, I used my overdraft after being made bankrupt, but before the Trustee had contacted my lenders/banks. Will I need to pay this? I know I shouldnt have used it but I have no income at the moment (self employed, no customers recently) and had to renew my driving license and buy food. Is it likely that it will need repaid, and also will this be considered by the Trustee as not cooperating with my bankruptcy as I definately do not want it extended.

Sorry if I rambled a bit there. Thanks

ontrack

As far as I know you are protected by the bankruptcy from any further action regarding debts prior to the date of bankruptcy.
Equally any further debts post date of bankruptcy you will be liable for. There has to be a clear cut off between the two for obvious reasons.
You are legally obliged to inform a creditor of your bankruptcy PRIOR to any borrowing over£500.
The bank will soon let you know if they want that money back!!

wharty

Just laugh it off and throw the letter in the bin. That's the best thing about being bankrupt when you get a letter like that. They can't touch you!

alastairq

A creditor can go to Court after the date of a bankruptcy petition...to try to obtain a CCJ against the debtor.

The debtor should respond to the Court papers, disputing the debt, quoting the BAnkruptcy details...[evidence?]

The applicant [creditor] will be shown this evidence, and the claim set aside.

Generally speaking, if a creditor pursues the CCJ route, it amounts to nothing more than a gross inconvenience for the BAnkrupt...and is, IMHO, used as such.

If the BAnkrupt simply ignores the Court papers, then the Court, being 'ignorant' of the BAnkruptcy, will grant the CCJ [which will not be enforceable]......

This CCJ will then appear on the BR's credit records.

To remove these, the Bankrupt then has to apply to Court to get the judgment set aside.

As I said, all amounts to a gross inconvenience in the end....more about a creditor trying to 'make a point?'

[A bit like a finance company only being prepared to accept a Court-issued certificate of Discharge? Which means little in the grand scheme of things, but can cost the BR around £60 for the privilege?]