Creditors objection

Tina2018

Hi,

I would like to know if creditors can deny/ object against a bankruptcy petition? Is it true, that unnecessary spending on credit cards prior (within 2-3 min) to bankruptcy can be objected by cc companies / banks ? Or is it more likely to result in a BRO/ BRU?

Thanks

TheGardener

Are you in England?
In England a BR petition is rarely refused - you are either insolvent - or you are not? Creditors don't get a say in it.

If you have spend money on CCs in desperation - covering bills and essentials or even everyday expenses, then no, its unlikely you would get a BRO. If there is gambling or alcohol involved, the OR might include a BRO but to be honest BRO/BRU's are often saved for BRs who refuse to co-operate with the OR or are found to be hiding assets.

Minkym00

It would depend on how much you spent on credit cards and what for. If your kids needed new beds or if you needed a new fridge, for example, you wouldn’t be criticised for it. But if you book a £10k holiday and then go bankrupt, then you would likely be targeted for investigation on the basis that you had no reasonable expectation of paying it.

ToxtethO'Grady

In BR the creditors have no say it's the OR who would question recent credit and may look at a restriction if the credit was not used for essentials or for paying to stop legal action/enforcement, like MinkyMoo says.


It's a DRO where the creditor has 30 days to object to being included in the order and they will usually do that if credit has been taken out 2-3 months before hand, if there's a valid reason such as an essential bill, the objection isn't usually upheld.