The sale of accounts during bankruptcy

Mckenna

Quick one, I presume companies selling your accounts during a live bankruptcy is legal? 

I am discharged in September but have been contacted by Arrow Global about a debt to Virgin Money included in my bankruptcy.

Arrow are saying they were not aware of the bankruptcy….. but Virgin were as all documentation was supplied and acknowledged and I have a live complaint with Virgin around incorrect credit report entries….

my understanding is I should not be chased for the debts included in the bankruptcy but surely selling them to be chased goes against that?

luvchocolate

You can just ignore it. They buy debts and sometimes this happens. 

TinyPomegranate

Sorry to jump on someone else's thread, but as a recent discharged (yay!) I'm very interested in this. Is there a better way to deal with this rather than just ignore it? Most people who have been BR will have had a very stressful time in the past with debt collections chasing them. There should surely be some kind of legal route to actually prevent this type of harrassment once BR is over?

sourcrates

Its not something you should worry about, your liability for these accounts ended when your bankruptcy was approved, it make`s precious little difference what the creditors choose to do with the accounts after that.

Accounts are sold in this way just on the off chance that something goes wrong, and the debts become collectable again, although under exactly what scenario that would be is not that apparent.

Look at it this way, make an official complaint against both parties, you can quite easily end up with £50-100 quid or so, perhaps off both of them, for the inconvenience caused to you, you might as well make it work in your favour eh, they have no remedy against you whatsoever, so why not have a little fun with them.

Mckenna

sourcrates said:

Its not something you should worry about, your liability for these accounts ended when your bankruptcy was approved, it make`s precious little difference what the creditors choose to do with the accounts after that.

Accounts are sold in this way just on the off chance that something goes wrong, and the debts become collectable again, although under exactly what scenario that would be is not that apparent.

Look at it this way, make an official complaint against both parties, you can quite easily end up with £50-100 quid or so, perhaps off both of them, for the inconvenience caused to you, you might as well make it work in your favour eh, they have no remedy against you whatsoever, so why not have a little fun with them.

I’m going to have to complain to both it would seem anyway. Virgin is still showing as an active account, despite selling to Arrow and Arrow have placed a default on my file from when they brought it in January which is beyond my bankruptcy date.

TripleH

If you want rid, then send a letter briefly explaining you are bankrupt and your details and that further correspondence on the issue will be treated as harassment.

If you're worried about getting these letters switch your thinking from : "they are harassing me, how will I pay" to "these muppets have paid £x to send me this letter to chase a non-existant debt and until they stop, their profits will keep falling".

I don't agree with enjoying the misfortune of others but also don't support those who should know better preying on the ignorance of others.

ToxtethO'Grady

My advice would be to keep a copy of your bankruptcy entry on the Individual Insolvency Register before your are discharged, it will stay on for 3 months after discharge. Or you can see, and copy, your entry on The Gazette then if they contact send them it.

Once.

Any contact after that tell them you want compensation as you have sent proof of your insolvency and if you need to, take them through their complaints procedure.

Books of debt are sold to debt purchasers and they are not told what has happened with the debt and it can be debt books of 10's of thousands or millions of pounds worth of debt for a percentage of that. It is up to the debt purchaser to sift through and try their chances at getting money from the customers.

Mart7379

I was recently contacted by a debt company saying I they were chasing a debt owed to Klarna, I just emailed them back and told them as of xx/xx/xx date I was declared bankrupt, and discharged this year and included a copy of my Bankruptcy order and Snapshot of my Discharge via the Insovency service bankruptcy register. They responded saying they would refer my email back to the client, 

couple of weeks later I had another email requesting I made an arrangement to pay the debt, I repeated the same process as previously. This went on a few times over a couple of month. I then contacted the insolvency service, to make them aware. I haven’t heard from them since. 

Yes, you can ignore them. Because they can’t legally enforce the debt. I personally had just got sick of my phone pinging every other week with an email from them chasing a debt that was effectively written off as soon as I signed the Bankruptcy paperwork.

Good luck.