defaults & bankruptcy

catten80

Hi, I have an appointment to go bankrupt in 2 weeks but have been served a default notice on a credit card for £77. Is it worth paying this off before my bankruptcy? Is there any advantage to not having a default if Im going bankrupt anyway? My other half thinks it is better to not have any defaults even if you go bankrupt, but can't remember why.

fermi

The bankruptcy is 100 times worse on you credit files than any default, so there is no point at all.

Plus, (even though this is for a tiny amount) it is considered a bankruptcy "offence" to preferentially pay one creditor over another, especially when in doing so you are attempting to gain an advantage for yourself or the creditor.

meech78

na, keep your £77 and go out for a fab meal!

Richard_S

No point in paying it at all Catten; put it towards Christmas, and as fermi points out, technically it's an offence.:eek: :eek:

catten80

thanks for the advice, I will have to let the default run its course. I needed to pay it by the 3rd Dec to remove it. But guess it will all be pretty messy anyway.

Where can i find out about these 'offences'? and what happens if you are found guilty of one??

fermi

catten80 wrote: »

Where can i find out about these 'offences'? and what happens if you are found guilty of one??

It's not normally an offence in the nasty criminal sense, so please don't worry.

They are mostly grounds that the OR might feel justifies a Bankruptcy Restrictions Order/Undertaking. These effectively extend the restrictions of bankruptcy without extending the bankruptcy itself.

Examples of conduct that might result in one are:

What sort of behaviour could lead the official receiver to apply for a BRO against me?
When deciding whether to make a BRO, the court may take into account your behaviour before and after the date of the bankruptcy order, so the official receiver will be looking closely at all your conduct.

We cannot list all the actions that could be considered dishonest or blameworthy in relation to your affairs, but here are some examples the official receiver could include in his report to court:

• incurring debts that you knew you had no reasonable chance of repaying
• giving away assets or selling them at less than their value
• deliberately paying off some creditors in preference to others
• gambling or making rash speculations or being unreasonably extravagant
• failing to keep or produce records that would explain a loss of money or property
• fraud or fraudulent breach of trust
• causing your debts to increase by neglecting your business affairs
• failing to supply goods or services that have been paid for
• carrying on a business when you knew or ought to have known you could not pay your debts

The more harm your behaviour causes your creditors, in the court's opinion, the longer the BRO is likely to last.

You can read the whole factsheet here:

http://www.insolvency.gov.uk/guidanceleaflets/bro/bro.htm

But as said, please don't worry, since only a small percentage of people are even considered for one.

carroussel

Hi everyone

I am a newby so please forgive my ignorance. We have a small business and a customer just wont pay his invoices. I would like some advice please but I do not know how to post a new message.thread.

Can anyone give me some help please Many thanks

betterlatethannever

Hi Carroussel..to start a new thread, find this button on the main page, its near the top on the left hand side.