Bankruptcy & Statute Barred

fatbelly

I think I  seee where you're coming from. The concepts of liability and enforceability are different ones. 
You say '4K of that is a secured loan with London Scottish who are in administration and was written off in 2005 but they're chasing it.'
Is that secured against a house that you still own? Can you prove it was written off? That would be unusual for a secured loan

mwarby

I’d let the OR worry about it. To be honest there is a very strong chance all creditors will receive £0 wether statue barred or not

dave3dtg

fatbelly said:

I think I  seee where you're coming from. The concepts of liability and enforceability are different ones. 
You say '4K of that is a secured loan with London Scottish who are in administration and was written off in 2005 but they're chasing it.'
Is that secured against a house that you still own? Can you prove it was written off? That would be unusual for a secured loan

The property it was secured on was repossessed. I had a sub-prime mortgage with Preferred Mortgages which was paid off and what was left over didn't cover the London Scottish loan. 
Yep, they wrote to me in early 2006 stating the remaining 14K would be written off. A year or so later they went into administration and were calling me upt about a year ago. I invited them to take me to court many times so I could show the letter but they never started proceedings. 
So as it's over 12 years old with no payments made or legal action I'd have thought it would be Statute Barred.

dave3dtg

mwarby said:

I’d let the OR worry about it. To be honest there is a very strong chance all creditors will receive £0 wether statue barred or not

Will the OR remove debts from my bankruptcy if they think they're Statute Barred?

Yep, none of my creditors will get a penny.

fatbelly

Under English law statute barred debts are still payable, but not enforceable.

I know it's odd - Scottish law is better.

So statute barred debts will not be removed, but as you say, it's unlikely anyone will see any money from you.

Thanks for clearing up the secured loan thing .

dave3dtg

Sorry guys, another question....
What if I suddenly come in to money immediately after my bankruptcy ends, and that money came via someone else who had been verbally instructed to hand the money to me, even though the source eliminated me from their will and point in time of that money was due to me during my bankruptcy?

mwarby

I recall for IVAs at least there were ways around the inheritance problem, before the person bequeathing the inheritance passes. Basically you can setup your will to leave the inheritance to a trust, a trust which would only give the money in certain circumstances, which could tie in with the insolvency ending, or be for a particular purpose only say a deposit on a house.

if your thinking of such work arounds the person writing the will needs to take legal advice on the matter. As someone receiving the inheritance there’s nothing you can do that would be legal AFAIK 

dave3dtg

Thank you.

So let me get this straight...
One remaining parent with 4 children. 
Parent passes before the end of one child's bankruptcy.
The other 3 children, not bankrupt, are bequeathed the house, sell it and are instructed to divide the proceeds in 4.
The sale of the house goes through after the end of the bankruptcy.
The bankrupt receives the funds after the end of their bankruptcy but still has to pay the bankruptcy off?

MinuteNoodles

dave3dtg said:

mwarby said:

I’d let the OR worry about it. To be honest there is a very strong chance all creditors will receive £0 wether statue barred or not

Will the OR remove debts from my bankruptcy if they think they're Statute Barred?

Yep, none of my creditors will get a penny.

The easiest way to think of bankruptcy is this:

All of your finances, all your debts, liabilities and assets that were yours up to the date the bankruptcy order is signed become the property of the ORs. So, apart from a few exceptions, your debts up to that date are now the OR's problem, not yours. A creditor cannot chase you for a debt you got from before the date of the bankruptcy. If they do then your response is to give them the case number and the contact details of the OR and tell them you're not legally able to deal with it.

The other side of this is that any payouts up to that date also belong to the OR. So for example if you put in for and got compensation for a PPI payout on a loan that was taken out before you were made bankrupt then that money would have to be paid directly to the OR. In many cases the lender would send you a letter saying what the award was but just pay the OR directly.

mwarby

dave3dtg said:

Thank you.

So let me get this straight...
One remaining parent with 4 children. 
Parent passes before the end of one child's bankruptcy.
The other 3 children, not bankrupt, are bequeathed the house, sell it and are instructed to divide the proceeds in 4.
The sale of the house goes through after the end of the bankruptcy.
The bankrupt receives the funds after the end of their bankruptcy but still has to pay the bankruptcy off?

Yes this is correct as far as I know. If a delay meant that the bankruptcy didn't get the windfall, the OR would never get any windfalls as it'd be standard practice for executors to delay.