Barclaycard debt

iosullivan

Hello all, just wanted to know if this is correct..... I have been discharged from my bankruptcy and currently getting my credit file corrected.


Now Barclaycard where on my list and they have sold my debt after I went bankrupt - sold the debt on 3 months after I was declared bankrupt.....now the company who purchased the debt have created an entry on my file and defaulted me as my bankruptcy date.


Surely this is incorrect as why would a company sell my debt on knowing I have gone bankrupt. Can I request the company concerned to remove there entry as this is incorrect????

National_Debtline

Hi there

It's certainly a little odd for Barclaycard to sell the debt on after your bankruptcy, and stranger still that someone would want to buy it from them in those circumstances. I don't think there's actually anything illegitimate about it, however.

Selling the debt on does not constitute chasing you or taking action. Until you are discharged from the bankruptcy the debts have not been definitively written off, so in theory the creditors could still hold out hope of getting some sort of dividend from your bankruptcy estate, however unlikely that may be.

As for the default, as long as that is not dated any later than the bankruptcy itself, it does not sound irregular. Any impact the default would normally have on your credit file is far outweighed by the bankruptcy. There should only be one default recorded on your file for that account, whichever name it is in.

Regards

Dennis

@natdebtline

Noodles78

iosullivan wrote: »

Barclaycard where on my list and they have sold my debt after I went bankrupt - sold the debt on 3 months after I was declared bankrupt.....now the company who purchased the debt have created an entry on my file and defaulted me as my bankruptcy date.


Surely this is incorrect as why would a company sell my debt on knowing I have gone bankrupt. Can I request the company concerned to remove there entry as this is incorrect????

Hi iosullivan

This has happened to me as well but with a different creditor. I wondered why a 3rd party would be interested in purchasing my debt after Bankruptcy & came up with this conclusion:

Once you go Bankrupt your assets are divided between your creditors (after IS cost). Assets could be generated from sales of property to NT IPA/IPA etc etc. So If this 3rd party purchased your debt off Barclaycard after your Bankruptcy for example £1 then they would take Barclycards place & become one the beneficiaries in your Bankruptcy. So if there is any cash surplus at the end of it all then this 3rd party would be entitled to some of this. Even if this was just a £2 pay-out to them its still a 100% profit made.

Not explained this brilliantly at all but hope you get my meaning.

Rrushi_Shqiptar

well MBNA sold my debt on 2-3 yrs after my BRO to MAX recovery, I am trying to get this removed as we speak as this debt now appears twice on my record. Vanquis still show it as defaulting every month after 5yrs from BRO. i am sorting that out too I hope.

Seems as if nobody cares about helping the other side afterwards.

Noodles78

Noodles78 wrote: »

Hi iosullivan

This has happened to me as well but with a different creditor. I wondered why a 3rd party would be interested in purchasing my debt after Bankruptcy & came up with this conclusion:

Once you go Bankrupt your assets are divided between your creditors (after IS cost). Assets could be generated from sales of property to NT IPA/IPA etc etc. So If this 3rd party purchased your debt off Barclaycard after your Bankruptcy for example £1 then they would take Barclycards place & become one the beneficiaries in your Bankruptcy. So if there is any cash surplus at the end of it all then this 3rd party would be entitled to some of this. Even if this was just a £2 pay-out to them its still a 100% profit made.

Not explained this brilliantly at all but hope you get my meaning.

I could also be TOTALLY wrong in my view to this but hopefully someone with a better knowledge of why this happens will come along & comment.

debtinfo

That is exactly right Noodles, You have to remember that what the bankrupt thinks of as a debt on the other side of the fence is an asset to the lender, it is money they are owed and sits as an asset on their balance sheet. Albeit an asset that is now much impaired. It may not be worth much but it still may be worth something. There are certain companies that specialize in buying up these debts from various companies at a low cost and sitting on them to see what happens. This means that they can monitor them with very low admin costs and hopefully make a profit on average from them.

They are happy if they make a profit and the original lender is happy because they have some sort of payment for their asset and they can write the balance of as a bad debt which may have some tax advantages.