Ongoing Defaults after a Bankruptcy Discharge

CanaryK

Hello, I am new here! I am hoping to get some advice. Got in way over my head after I closed my business in 2019 with debt. Bankruptcy really was the only solution. The bankruptcy was discharged in 2021. However, whilst the majority of creditors state 'Satisfied' on my credit reports, three creditors are still issuing monthly defaults against me for missed payments. I am hoping for a concise answer as to whether this is allowed. I am working really hard on my credit profile, and I understand the bankruptcy will stay on my file for 6 years. But they are defaulting me every month, even though legally the bankruptcy should have settled my debts, not to mention if I paid any of these defaults now, I would be in breach of the order. 
Any advice would be really appreciated on how to get them to stop doing this if they are acting incorrectly.

retiredbanker1

Have you contacted them to advise of your situation - if so what was their response?

sourcrates

Accounts can only default once, what you are seeing is the monthly status update of that default.

Or, of I have read that incorrectly, and the account did not default, the missed payment status.

The correct position should be that all your debts show as being in default, with a default date no later than the date of your bankruptcy.

All entries will automatically be removed from your credit file on the 6th anniversary of the bankruptcy/default date.

Debt Camel provides good advice on how to clean up your file here -

Repair your credit record after bankruptcy (debtcamel.co.uk)

CanaryK

retiredbanker1 said:

Have you contacted them to advise of your situation - if so what was their response?

I took advice from a debt advice company. The defaults should have stopped when the bankruptcy was discharged, and the account should have been marked account closed or satisfactory. Instead, some creditors are still issuing defaults to me even now. I am waiting for rectification or deadlock letters before taking this to the financial ombudsman. 

sourcrates

CanaryK said:

retiredbanker1 said:

Have you contacted them to advise of your situation - if so what was their response?

I took advice from a debt advice company. The defaults should have stopped when the bankruptcy was discharged, and the account should have been marked account closed or satisfactory. Instead, some creditors are still issuing defaults to me even now. I am waiting for rectification or deadlock letters before taking this to the financial ombudsman. 

No, that is incorrect, the two are separate issues altogether.

As I said above, what you are seeing is the monthly status update, look at the default date on each account, they should all be dated no later than the date of your bankruptcy, but will still show for 6 years from that date regardless of your bankruptcy status.

Whilst its true they should show as satisfied, and pre-date your bankruptcy, it really makes no difference when your bankrupt, as that is the main factor here, they will still be automatically removed on the 6th anniversary of the date of default regardless.

CanaryK

retiredbanker1 said:

Have you contacted them to advise of your situation - if so what was their response?

Most of them have apologized and marked the accounts as closed or satisfied. 3 are still issuing me with defaults each month, suggesting to other creditors that I am still liable for the debts and missing the monthly payments. 

CanaryK

sourcrates said:

CanaryK said:

retiredbanker1 said:

Have you contacted them to advise of your situation - if so what was their response?

I took advice from a debt advice company. The defaults should have stopped when the bankruptcy was discharged, and the account should have been marked account closed or satisfactory. Instead, some creditors are still issuing defaults to me even now. I am waiting for rectification or deadlock letters before taking this to the financial ombudsman. 

No, that is incorrect, the two are separate issues altogether.

As I said above, what you are seeing is the monthly status update, look at the default date on each account, they should all be dated no later than the date of your bankruptcy, but will still show for 6 years from that date regardless of your bankruptcy status.

Whilst its true they should show as satisfied, and pre-date your bankruptcy, it really makes no difference when your bankrupt, as that is the main factor here, they will still be automatically removed on the 6th anniversary of the date of default regardless.

sourcrates said:

CanaryK said:

retiredbanker1 said:

Have you contacted them to advise of your situation - if so what was their response?

I took advice from a debt advice company. The defaults should have stopped when the bankruptcy was discharged, and the account should have been marked account closed or satisfactory. Instead, some creditors are still issuing defaults to me even now. I am waiting for rectification or deadlock letters before taking this to the financial ombudsman. 

No, that is incorrect, the two are separate issues altogether.

As I said above, what you are seeing is the monthly status update, look at the default date on each account, they should all be dated no later than the date of your bankruptcy, but will still show for 6 years from that date regardless of your bankruptcy status.

Whilst its true they should show as satisfied, and pre-date your bankruptcy, it really makes no difference when your bankrupt, as that is the main factor here, they will still be automatically removed on the 6th anniversary of the date of default regardless.

No, they are suggesting that the debt is still owed and that I am missing payments each month. I will be pursuing through the financial Ombudsman after next week as it will reach the 8 week rectification deadline. 

Rajix

If the debts that are being reported were part of the bankruptcy then reach out to the receiver and give them the details, they will resolve it for you.

CanaryK

Update: Financial Ombudsman have taken on my case against NatWest who are still issuing defaults. All others removed defaults after the bankruptcy discharge when I complained to them.