Friend with bankruptcy - monthly payment?

MrsShazbat

Halle-flippin-lujah she has finally confessed that the DMP relates to debt from before her bankruptcy and wasn't included. For whatever reason. I had of course already worked that out but she was trying to fob me off. Like, mate you asked for my help. Unfortunately for her I'm way more [STRIKE]internet[/STRIKE] savvy than she is and have looked everywhere I can to get to the bottom of this. Gave her a bullet-pointed list last night of things she needs to do by the time I see her tomorrow.

fatbelly

Point her to this from the bankruptcy technical manual:

40.8 Bankruptcy debts

Bankruptcy debts are defined as:
•any debt or liability to which the bankrupt is subject at the commencement of the bankruptcy (being the date of the bankruptcy order),
•any debt or liability to which the bankrupt may become subject after the commencement of bankruptcy, including after discharge from bankruptcy, by reason of any obligation incurred before the commencement of bankruptcy (a contingent liability),


Whether it was listed or not makes no difference. If it pre-dates the bankruptcy it's a bankruptcy debt. My previous advice applies.

Very few debts 'survive' bankruptcy: fraudulent debts can be pursued after discharge; student loans and criminal fines are not qualifying debts. To complete that list, social fund loans and child maintenance arrears.

If these are ordinary credit debts and predate the bankruptcy she should ask for a refund of all payments made over the past 10 years.

System

MrsShazbat wrote: »

Halle-flippin-lujah she has finally confessed that the DMP relates to debt from before her bankruptcy and wasn't included. ]

Sorry but unless it was one of the very very few exceptions previously mentioned yes it was included. Even if it was something she had forgotten and not put down on the BR paperwork or OR forms it was included and the correct course of action when this reared its head was to hand over all the letters to the OR.

Just because you forget to put it on the paperwork doesn't mean it isn't included. When you are declared bankrupt all your financial affairs which are not just your debts but also all of your assets as well up to that point now become the property and responsibility of the Official Receiver including the skeletons in the closet you've forgotten about.

In short she has spent all that time actually not only repaying money she didn't have to but actually committing a criminal offence as she has been giving preferential treatment to a creditor. Stepchange would know this so it would seem that whoever set up the DMP didn't give Stepchange all the information.

Now we've got that cleared up....

Give her the advice and after that don't bother, not even to ask how its going, and leave her to her own devices. One of my best friends is like her and all you're doing is wasting your own time and energy. I'd be very surprised if a single point of that list gets done as like my friend she'll just decide its all too much trouble and just stick her head back in the beach its been buried in for quite clearly the last couple of decades. She'll continue to just give you lip service in order to shut you up and decide she knows better and continue in the way she has. Sometimes you've just got to accept that all you can do is sit and watch the inevitable slow train wreck no matter how frustrating it is knowing that there is a way to stop it.

peterkay369

Out of interest is there any update to this? Did you manage to confirm whether your friend has been paying towards a loan excluded from the bankruptcy, or has in fact been making payments to Stepchange/another company incorrectly for the past few years?