Potential Additional Debt From CCJ AFTER BR Has Been Approved.

Simon.G

Long story short.

I worked as a contractor for a firm for 6 months in 2015. Three months after I left I received a polite letter asking me for around half of the money I was paid or I would be taken to court for the full amount, due to alleged wrongdoings on my behalf whilst in their employ - I dispute this.

I was sent emails and letters from the client demanding payment or face court up until June 2016 when they eventually filed in the small claims court. I sent off my defence and heard nothing. After a while I called the court who advised that the claim was to be struck out as the claimant has not responded to the defence in the allotted time.

Today I get a letter from the court stating that the claim has been reinstated and that I would be notified by the courts as to the court date etc.

I dont think the claimant has a case, however lets assume that I am found guilty of something or other and have a CCJ placed on me for the recovery of funds. What can I do about it seeing as I was accepted for BR in between the start of the claim and the actual hearing date?

I will speak to the OR on Monday about it, but could and CCJ be included in the BR seeing as the actual start of the claim was made pre-BR and I would have had not way of knowing the exact figure whole I waited for the court to make a decision on the date of hearing? Or am I out of luck and therefore will have to pay any CCJ that is given?

Your help is appreciated.

london1973

hi there, treat this as anecdotal and wait until one of the experts comes on and gives you chapter and verse BUT!

my understanding is that if the debt was incurred pre BR date, it falls into the bankruptcy, irrespective of whether its proven after the date-so think you are ok

london1973

i think the OR technically takes over the case too-again wait for advice!

Simon.G

Here is the thing...and what I need clarifying...the actual debt has not incurred before the BR date as I was made BR on 08/11/2016 and I am still waiting to hear about a hearing date, hence no CCJ has been made as of yet.

I am hoping that as the claim was started pre-BR I can add any CCJ and monetary recovery to the BR. I understand about not being to add additional debt made after the BR debt, but this technically started pre-BR.

It feels like I am clutching at straws here...am I?

london1973

A CCJ just crystalizes the debt not creates it, the date of the original claim I suspect is the key one here
Anyone?

NotEvanAPot

Nothing to fear. The claim is based on a loss that is attributed to an action prior to the BR date.

This is the briefest of explanations, based on what you have posted. Discuss with examiner from the Insolvency Service when they contact you.

Simon.G

Sorry, I have already been contacted by the OR, I was planning on contacting them on Monday.

So you are saying that I CAN add it to the BR then assuming I am asked to pay something back to the claimant at the hearing?

fermi

Legal definition of a bankruptcy debt.

382 “Bankruptcy debt”, etc.

(1)“Bankruptcy debt”, in relation to a bankrupt, means (subject to the next subsection) any of the following—

(a) any debt or liability to which he is subject at the commencement of the bankruptcy,

(b) any debt or liability to which he may become subject after the commencement of the bankruptcy (including after his discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy,

NotEvanAPot

It will not be included, because once you provide a copy of BR order, they would be throwing money away proceeding. Consider it closed.

I mentioned the examiner purely because they are likely to want to verify, best to inform them a call is imminent.

Simon.G

So what do I do, tell the OR on Monday so they can sort it out, or contact the claimant and let them know?

Just to be clear, I never mentioned it on the BR forms as I had at that point been told by the court that the claim would be struck off as the claimant had not responded to my defence within the allotted time.

Turns out that they have now managed to reinstate the claim and the case moves forward.

NotEvanAPot

If you have a BR order, send the number and court details to the claimant (phone, email or letter if needed). Ideally a copy of the order received.

Advise OR that court has allowed late submission - this is a tactic often used, the court was incorrect not to advise that they give a further 7-14 days to a claimant upon passing of acknowledgement date, and also that the delays in processing may have meant that the 5 days of processing had not passed. The courts work in paper at a snails pace unless chivvied along by an interested party...

Do not expect much interest from the OR, it is immaterial to their activities and they are stretched thin as it is.