MIB and bankruptcy

Watermanbf5

I’m looking into bankruptcy due to a lot of factors and I’m looking to see if a debt of £33,000 from MIB (motor Insurers Bureau) that has been passed to DWF would be included. Thanks all

National_Debtline

Hi Watermanbf5 and welcome to MSE,


This is a slightly complicated answer and will depend what elements make up this debt (i.e. personal injury, loss of wages etc). But if there is an element of personal injury then it can be included in the bankruptcy (as a provable debt) but you would not be released from the debt upon discharged. In other words, this type of debt can benefit from the division of assets through a bankruptcy, but, if any money is still owing on discharge that would still need to paid, unless the court orders otherwise.


"40.181 A liability in respect of personal damages not released on discharge
The liability of a bankrupt to pay damages to a third party in respect of a personal injury claim is a provable debt in the bankruptcy but the bankrupt is not released from the debt on discharge unless the court so directs URL="https://www.insolvencydirect.bis.gov.uk/technicalmanual/Ch37-48/chapter40/part8/Part%208%20notes.htm#18"]note 18[/URL."


Laura
@natdebtline

Watermanbf5

This debt is over 10 years old I have no idea what this debt is made up of. So this debt would still be there after bankruptcy??

Watermanbf5

By the way I understand this DWF have bought the debt off MIB so any link to the actual original debt would be gone?? It would be just the debt or am I wrong??

debt_doctor

Hi,

Laura from National Debtline is quite correct.

I do fully understand where you are coming from and it may well be that any distinction between personal injury and general damages has been lost over time and by being sent to a 3rd party collector (or new debt owner).

The unfortunate bottom line is that you would put the whole debt in to bankruptcy with the possibility that the creditor could still try to enforce the debt after discharge on the basis of any injury element.

DD

debt_doctor

To add....

Personal injury can be time barred if no court action takes place within 3 years of the injury, but sometimes this can be longer. It would be incredibly unlikely to stretch to 10 years.

So if no court action for any personal injury element has taken place then likely the debt is unenforceable anyway.

DD

tastyhog

debt_doctor wrote: »

To add....

Personal injury can be time barred if no court action takes place within 3 years of the injury, but sometimes this can be longer. It would be incredibly unlikely to stretch to 10 years.

So if no court action for any personal injury element has taken place then likely the debt is unenforceable anyway.

DD

the accident has clearly been settled, the 3 year time frame is where an insurer / solicitor has to lodge papers with the court in respect of getting the actual settlement, the MIB have already settled the case and paid the injured party, it's done and dusted.

that time frame wouldn't apply in this case.

MEM62

Watermanbf5 wrote: »

This debt is over 10 years old I have no idea what this debt is made up of. So this debt would still be there after bankruptcy??

You have no information? Has the nature of the debt not been explained to you? Surely they must have justified their demand for £33K.

Watermanbf5

Hi sorry I do know what it’s for but not what the debt is made up of as above states. There was no others vehicle it was a building. Thanks.

debt_doctor

Watermanbf5 wrote: »

Hi sorry I do know what it’s for but not what the debt is made up of as above states. There was no others vehicle it was a building. Thanks.

Did any person receive a personal injury due to your actions?
DD

jimbo747

If there's any fairness in the world this shouldn't't be wiped out with bankruptcy. I hope you have to pay back every penny.