Personal debt not included in bankruptcy

Bigphil1474

OP, I would have thought that it would be up to the official receiver to establish who is owed what, and if there's no record of his debt to you, then they wouldn't know to distribute any of his asset value to you. Obviously if he lied then that may be an offence by him, but if he failed to mention your debt because he didn't think it was still a debt (family!) then that may be different. Far as I know, the discharge is the last of any debt up to that point - but only the debt which is dealt with under the proceedings (could be wrong). If you'd had a written agreement then you might have a claim (?) but if it was me, I'd mention to his dad that you still haven't got your money back - can't see how he could argue it was discharged through bankruptcy if it was never mentioned in the proceedings.

haggis0073

People forget to add debt sometimes when filing bankruptcy, and that is not an offence IMO. And worst case scenario if he was to get penalized for it..... around 1-3 years BRO max IMO. Either way it would have no affect on him as the BR stays on credit file for 6 years

I have seen fraudlent/dishonest cases of £50,000+ and they only ended with a 5 year BRO

If you google "Bankruptcy Restriction Outcomes" you can see how long people got for being dishonest, Unfortunatley for you it wont change anything i am afraid

debt_doctor

Hi

Fact is, that when bankruptcy is declared, all debts are covered on the day the person becomes bankrupt whether the debt is listed on the forms or not.
If subsequently, things come to light that poor behaviour was of a level where it warrants investigation (by an objection - the Insolvency Service won't go looking for low level stuff) then there can be restrictions.
From what you say, you lent him the money and felt he would pay you back - that is the position of any lender.

I think your frustration is a personal beef (understandably) about 'someone getting away with it' and I do not see any remedy for you within the bankruptcy legislation.

DD

John-K_3

debt_doctor wrote: »

Hi
I think your frustration is a personal beef (understandably) about 'someone getting away with it' and I do not see any remedy for you within the bankruptcy legislation.
DD

Thanks for the response; it’s not really frustration, more surprise at how unlikely it seems that any sanction be applied to someone who chooses to omit a major debt, especially one to family.

I knew long ago that the money was gone, his character was revealed pretty clearly when he missed the first payment and instead upgraded his car.

debt_doctor

I get that, but the debt is not omitted,if you inform the Insolvency Service your debt will be included - but as most bankrupts have nothing then you won't receive anything whether you put yourself in the bankruptcy or not.

Now - if you had evidence that this persons assets or income position is not as declared to the OR, that is a different matter all together and could lead to civil and criminal sanctions and prosecution.

DD

debt_doctor

I'm off shortly, will pop back tomorrow.
DD

[Deleted User]

Whilst it doesn't help you - If you take any advice from the official debt management companies it certainly use to be any family owed debt used to be disregarded in the very first instance. Well that's what I remember being told around 2010. I'd hope things have changed but definately my experience was family owned dues doesn't really get taken into any consideration.