Creditors and bankruptcy

london1973

Can someone tell me anything about the role of creditors in bankruptcy, do they have a say as to how the whole process in conducted, I guess I'm asking what the relationship between creditors and the OR/trustee is- this might sound rather nonsensical but I have one or two creditors who may be minded to be quite unpleasant if they had the chance, can they pressure the OR to haul you over the coals perhaps more than is necessary-I really don't know how this side of it works, I've been batting these people off for years, can they attack me from the side now?! If so would it be an option to leave these people off the bankruptcy, or in fact is that even an option/legal?

As always, thanks in advance

worriedmamma

Nope, none of the debts that can be included can be left off, to my knowledge. They can't do anything to you directly. I believe the OR writes to the creditors to ask for their response regarding your debt to them, I've seen on my application online that my OR has written to my creditors and also wrote a notice of 'no meeting' to say he won't be calling them to a meeting?

london1973

What I mean by leave them off is to not include them so they don't know, and therefore have no contact with the OR and technically they can't chase you as you've been declared bankrupt?

May be completely illegal! Not sure-help!

london1973

Sorry worriedmam our posts crossed!

worriedmamma

I'm pretty sure when an OR approves an application, they run a credit check on you. When my OR called me, the day after approval, he asked if any of the debts were in my maiden name (which they are!) and said ok, that explains that then, I got the impression he'd already run a credit check. I think they find out who your creditors are and include them all (if they are the right debts that are included)

Someone else may know better but that's my thinking...

Muttipops

london1973 wrote: »

What I mean by leave them off is to not include them so they don't know, and therefore have no contact with the OR and technically they can't chase you as you've been declared bankrupt?

May be completely illegal! Not sure-help!

london, are these creditors companies or are they private loans and you fear for your physical safety because they might send round the bully boys?


And surely they would need to actually know you are bankrupt in order to not chase you?

london1973

They are private loans but not the type who would send the bully boys round, however if given the chance to exert serious pressure via official channels I'm sure they would-I'm not sure how it works with OR and creditors, does he speak/write to them and ask for their input and guidance?

Muttipops

london, you can't give them what you don't have and so even if they presented a case to the OR, what would they gain.


The OR does write to creditors and this is what he said in a copy of that letter...


"As no meeting is to be held and there is no apparent prospect of a distribution of funds,
creditors will not be asked to submit a proof of debt form as a matter of course. Should you
need to formalise your claim by lodging a proof of debt, you can find one on the Insolvency
Service website at https://www.gov.uk/government/collections/insolvency-serviceforms-
england-and-wales (select form 6.37). Alternatively you can request one from our
office.
.
I will be pleased to receive from creditors useful information concerning the bankrupt's
dealings or property, together with particulars of any written or oral statement made by
the bankrupt concerning their financial position, and to consider suggestions for further
explanation or enquiry."


I suppose if i had told a shed load of lies to the OR, then maybe I could be issued with a BRO, if for instance I had committed fraud or given certain creditors preferential treatment, and if the OR came to know about those lies via a creditor telling a diffferent story to mine. ( I didn't, but then again, you never know what the bank might think about me, because my bank and this was abroad, was a bunch of ***********.)

National_Debtline

Hi london1973


I understand that you are thinking out loud to an extent, but I'm not sure I follow your train of thought here. There is no benefit I can see in excluding details of known creditors from your application. The effects of bankruptcy extend to all of your worldly debts, but missing out details makes it more likely that any omitted creditors will continue to contact and pursue you until they are made aware of your bankruptcy. This may cause extra distress for you, not to mention extra work for the Official Receiver.


Above all, you are expected to provide accurate and comprehensive information in your bankruptcy application, and if you were deemed to have deliberately failed to do so, you could run the risk of having bankruptcy restrictions imposed on you.


The Official Receiver is a civil servant and while his her/duties include recouping monies/assets where possible for distribution to your creditors, they are their own person and can't be directed or instructed by those creditors.


One of the very benefits of bankruptcy is that it stops your creditors pursuing any further action against you - you will deal with the OR and the OR alone. Those creditors will have no way of getting around this.


I understand that bankruptcy is a big step, but do be careful not to overanalyse things. It is, ultimately, a process, and one that many before you have been through without any nasty surprises - one only has to read some of the threads and diaries here on MSE to see that.


Dennis
@natdebtline

london1973

thanks for responses, and yes Dennis I am inclined to overthink things-my concern is purely based around some of these creditors knowing me from a few years ago, before my life turned upside down (at the risk of sounding arrogant I really did have it all, only to throw it away) - and they might assume I still have plenty of assets etc and therefore they cause trouble with the OR by telling them this-then the OR gets suspicious and gives me a harder time than usual
fact is;
1. I have no assets left,
2. I have no intention of being anything but 100% honest with the OR

I just wasn't aware of exactly how it works and what the rules are, and now very kindly clarified, so thank you again