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    • MrsShazbat
    • By MrsShazbat 6th Nov 17, 10:46 PM
    • 554Posts
    • 2,780Thanks
    Friend with bankruptcy - monthly payment?
    • #1
    • 6th Nov 17, 10:46 PM
    Friend with bankruptcy - monthly payment? 6th Nov 17 at 10:46 PM
    This is a question from me but regarding a friend. I've had a good year or two following this site and getting some savings behind me, and am trying desperately to pass this on to a friend who is in dire straits.

    I don't have all the info to hand but in a nutshell, friend was declared bankrupt 5+ years ago (from memory, I'm trying to get info out of her). She's sent me a list of her outgoings, and pays 150 'towards' her bankruptcy. Can anyone tell me what she might still be paying for? I had an IVA, which I paid off and have been free of for 3 years now. I don't make any further payments, so in my ignorance (and till I get the full info from her), I presumed that declaring bankruptcy meant something similar or even no more paying anything. I'm worried of course that she's paying for something she shouldn't be.

    I'm sorry it's a bit vague, but in truth it's bugged me for years. In short, if one is declared bankrupt what if any further payments in respect of this have to be made?

    Thanks, will update with further info as I get it.
    * Xmas 2018 #8 248 / 365 * (2017 496.53; 2016 424.32) * SPCNo.11 #66 * Clothes Challenge 2018 #13 *
    SPCNo.10 682.31
    SPCNo.9 442.64
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    • MrsShazbat
    • By MrsShazbat 22nd Nov 17, 1:12 PM
    • 554 Posts
    • 2,780 Thanks
    This is what I'm trying to tell her but the other day I got a very curt text assuring me she knew what she was doing, she'd gone through it all with her sister and it was all correct. So....

    She did tell me she was going to ring StepChange as they manage her debt (she showed me her account with them on their login so that is correct) but I don't know whether she has, or will. I'm seeing her on Friday so will have one last go. If we're in a public place she can't have a go at me LOL

    Anyone want to bet that it's a standing order that she forgot to cancel (as opposed to a direct debit - trust me she won't know the difference!)
    * Xmas 2018 #8 248 / 365 * (2017 496.53; 2016 424.32) * SPCNo.11 #66 * Clothes Challenge 2018 #13 *
    SPCNo.10 682.31
    SPCNo.9 442.64
    • MrsShazbat
    • By MrsShazbat 23rd Nov 17, 1:19 PM
    • 554 Posts
    • 2,780 Thanks
    Halle-flippin-lujah she has finally confessed that the DMP relates to debt from before her bankruptcy and wasn't included. For whatever reason. I had of course already worked that out but she was trying to fob me off. Like, mate you asked for my help. Unfortunately for her I'm way more internet savvy than she is and have looked everywhere I can to get to the bottom of this. Gave her a bullet-pointed list last night of things she needs to do by the time I see her tomorrow.
    * Xmas 2018 #8 248 / 365 * (2017 496.53; 2016 424.32) * SPCNo.11 #66 * Clothes Challenge 2018 #13 *
    SPCNo.10 682.31
    SPCNo.9 442.64
    • fatbelly
    • By fatbelly 23rd Nov 17, 5:52 PM
    • 12,464 Posts
    • 9,512 Thanks
    Point her to this from the bankruptcy technical manual:

    40.8 Bankruptcy debts

    Bankruptcy debts are defined as:
    any debt or liability to which the bankrupt is subject at the commencement of the bankruptcy (being the date of the bankruptcy order),
    any debt or liability to which the bankrupt may become subject after the commencement of bankruptcy, including after discharge from bankruptcy, by reason of any obligation incurred before the commencement of bankruptcy (a contingent liability),

    Whether it was listed or not makes no difference. If it pre-dates the bankruptcy it's a bankruptcy debt. My previous advice applies.

    Very few debts 'survive' bankruptcy: fraudulent debts can be pursued after discharge; student loans and criminal fines are not qualifying debts. To complete that list, social fund loans and child maintenance arrears.

    If these are ordinary credit debts and predate the bankruptcy she should ask for a refund of all payments made over the past 10 years.
    • Tarambor
    • By Tarambor 24th Nov 17, 3:41 PM
    • 3,222 Posts
    • 2,331 Thanks
    Halle-flippin-lujah she has finally confessed that the DMP relates to debt from before her bankruptcy and wasn't included. ]
    Originally posted by MrsShazbat
    Sorry but unless it was one of the very very few exceptions previously mentioned yes it was included. Even if it was something she had forgotten and not put down on the BR paperwork or OR forms it was included and the correct course of action when this reared its head was to hand over all the letters to the OR.

    Just because you forget to put it on the paperwork doesn't mean it isn't included. When you are declared bankrupt all your financial affairs which are not just your debts but also all of your assets as well up to that point now become the property and responsibility of the Official Receiver including the skeletons in the closet you've forgotten about.

    In short she has spent all that time actually not only repaying money she didn't have to but actually committing a criminal offence as she has been giving preferential treatment to a creditor. Stepchange would know this so it would seem that whoever set up the DMP didn't give Stepchange all the information.

    Now we've got that cleared up....

    Give her the advice and after that don't bother, not even to ask how its going, and leave her to her own devices. One of my best friends is like her and all you're doing is wasting your own time and energy. I'd be very surprised if a single point of that list gets done as like my friend she'll just decide its all too much trouble and just stick her head back in the beach its been buried in for quite clearly the last couple of decades. She'll continue to just give you lip service in order to shut you up and decide she knows better and continue in the way she has. Sometimes you've just got to accept that all you can do is sit and watch the inevitable slow train wreck no matter how frustrating it is knowing that there is a way to stop it.
    Last edited by Tarambor; 24-11-2017 at 3:48 PM.
    • peterkay369
    • By peterkay369 1st Dec 17, 12:21 AM
    • 164 Posts
    • 68 Thanks
    Out of interest is there any update to this? Did you manage to confirm whether your friend has been paying towards a loan excluded from the bankruptcy, or has in fact been making payments to Stepchange/another company incorrectly for the past few years?
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