A reader asked:
I am thinking of filing for bankruptcy. Some of my debts go back quite few years. I tried a DMP and an IVA that failed. I’m behind on my household Bills too.
I’m single mum and find hard to cope with all this stress. I finally plucked the courage to do the form. I have at least 13 creditors, some of these details I took off my IVA creditors list but some have passed the debts onto others and some of the names of companies I don’t even know.
I’ve put down an estimate on some of them of what I owe as don’t have the paperwork. Is this ok to do as I don’t want to get it wrong?
Filling out official forms and realising you don’t know some of the details is stressful. And if you have gone bankrupt then found out that you missed a debt off the list of your debts in your bankruptcy application, you may be panicking.
This normally isn’t a problem!
If the debt would have been included in your bankruptcy if you had listed it at the start, then the debt will still be wiped out. And it doesn’t matter if the amount of the debt you put on the bankruptcy application isn’t right, it is still all included.
In case you think this sounds unlikely, the relevant legislation is s382 of the Insolvency Act.
NB this only applies to bankruptcy. In a DRO or an IVA, only the debts listed on the application are included, so it’s important you get them right!
It’s still a good idea to try to list everything when you are completing the online bankruptcy application forms, because the Official Receiver will tell all the listed creditors. If you miss some off, they may still contact you and you will have to tell each of them when you went bankrupt.
Looking at some detailed questions from other readers:
Debts sold to a debt collector
I have had a couple of catalogue debts passed to debt collectors several times and have lost track. Do I have to phone the last one to try to find out?
Sometimes the original creditor is just asking a debt collector to collect the debt – then the original creditor still owns it. Sometimes they have sold your debt and the debt collector is now the creditor.
But you don’t have to track down who owns the debt now or find out if a debt collector is just acting for another creditor. Just put down the last details that you had and your best estimate of the amount owed.
Utility bills
I forgot to put some old utility debts on my bankruptcy application, will I still have to pay them?
No, you won’t have to pay these bills. This is a very common omission – provided the date of the debt was before your bankruptcy decision they will be included in your bankruptcy.
So write to the utility company and inform them that you went bankrupt on dd/mm/yy and your bankruptcy number is 12345678. If you have a pre-payment meter with the debt loaded on to it, ask them to stop deducting money for the debt from your payments.
Also tell your Official Receiver’s office about the debt you missed off. They won’t mind but they do need a complete list of your debts.
Tax credit overpayment
I was declared BR a year ago. I have since been to a tribunal concerning a tax credit debt. Although my appeal was not allowed the judge clearly write in the paperwork the debt was included in my bankruptcy and was not repayable. Today I received a letter from HMRC demanding this payment with no ref to my bankruptcy or the tribunal’s decision. Can I still be liable for this debt for some reason – I’m not getting tax credits anymore.
This tax credit debt should be included in your bankruptcy unless:
- it relates to a period after your bankruptcy application was approved. So if you went bankrupt in Jan 2013 a tax credits overpayment for 2014-15 wouldn’t be included; or
- it is considered that the overpayment occurred because you committed fraud. As the tribunal judge said the debt would be covered by bankruptcy, this seems unlikely.
I suggest you tell your Official Receiver’s office about the debt and ask if it is covered. If they confirm that it is covered (which would be the majority of cases), write to HMRC and say you went bankrupt on dd/mm/yy, bankruptcy number 12345678 and so you are not liable for this debt.
If you get more letters from them chasing this debt after you have told them about your bankruptcy, put in a written complaint.
Child Support arrears
The CMS have said they will be taking money from my earnings. Can I stop this because I went bankrupt last year?
Child maintenance arrears are one of the few types of debts that can’t be included in bankruptcy, so having gone bankrupt won’t stop these deductions.
Obviously, this will reduce your income, so inform your Official Receiver’s office about this. If you are paying an IPA (most people who go bankrupt don’t) your monthly payments will be reduced as your income is now lower.
Tell your OR about any debts you have missed off
You should tell your Official Receiver’s office if you find you have missed a debt off. They won’t mind, you haven’t done anything wrong. But they need to know in case they have to make a distribution to your creditors.
Any questions?
If you are trying to fill out your bankruptcy application, it’s always good to talk to a debt adviser about this. they can check you don’t have a better option than bankruptcy and they will be able to talk about which debts can be included.
The big questions about bankruptcy
Repairing your credit after bankruptcy
Bankruptcy discharge – what happens?
simone says
Went bankrupt on 12th December 2016 & declared all my debts but i know there was a utility company who were chasing me a few years ago for a debt but i cant remember who they were now. Should i write to them all just in case? I told my OR basically the same but she has not advised still
BTW fantastic advice here
Sara (Debt Camel) says
No you can relax, you don’t need to do this. All old utility debts will have been wiped out by your bankruptcy even if they weren’t listed. If you are ever contacted about this debt in future, by the utility company or a debt collector, just give them the date of your bankruptcy.
zhila says
Forgot to include a debt on bankruptcy application
I have gone bankrupt then found out that I missed a debt off the list of MY debts,i bankrupt on 2011 and still have debt on my credit score
what should i do
Sara (Debt Camel) says
It doesn’t matter that the debt was missed off your application, it was still wiped out by your bankruptcy.
You need to ask the lender to add a default date of the date you went bankrupt and set the balance owed to zero. See https://debtcamel.co.uk/credit-file-after-bankruptcy/.
Michael says
I went bankrupt in late 2010 (NI) and forgot to include in the creditors section of unsecured debts in the petition an overdraft with my bank for £400 (account was -£400 at time of bankruptcy). I have listed the bank account on the petition as my main account around the time of bankruptcy. I did not and have not used the account since bankruptcy therefore there has been no activity. I had a personal loan with the same bank that was listed on the creditors section of the petition that was wiped out by the bankruptcy. During 2011 I have had a DCA mailing me trying to recoup the said amount. After a while they stopped contacting me. It seems that the debt has been sold on to another DCA. In this past year the DCA (Robinson Way) have been sending me letters trying to recoup the amount – All bankruptcy related information has now dropped off my credit report – What should I do? Would this overdraft have been included in my bankruptcy? Many thanks in advance.
Sara (Debt Camel) says
In England and Wales it would definitely have been included in your bankruptcy. I have no reason to think this is different in Northern Ireland, but I suggest you call the NI Debt Helpline: 0800 028 1881 to confirm this.
Michael says
Many thanks for your advice, Sara – I appreciate it.
Sara Begley says
Would I have to list mine and my 12 year old daughter’s mobile phone contracts as debtors?
I took both of our contracts out last January and I owe £200 on each still, both payments are up to date.
We will still need our phones (hers is used for security when she walks to and from school). I pay £60 for the two of them monthly.
I really don’t want them included if I don’t have to.
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000 about whether bankruptcy is a good option for you and they can cover this issue about the phones, because the answer will depend on whether there are any arrears on the contracts and how essential they OR is likely to think they are
Christopher Wood says
I plan to go bankrupt which will involve an amount of mortgage arrears in itself not a problem but my ex wife is on the mortgage as a joint holder. we seperated 5 years ago and she declared herself bankrupt at that time. Her bankruptcy included all debts but she did not declare the mortgage arrears. If I declare bankruptcy now will the mortgage company transfer 100% of the debt the debt to her
Regards
alice says
“Did not declare the mortgage arrears” You don’t have to declare all your debts on a bankruptcy application like you do on a DRO. Whatever is owed at the time is written off. Debts owed at the time are debts due and payable or contingent at the time of the bankruptcy order. If it was 5 years ago and she hasn’t been chased for it (and you have) then it may have been included and written off.
But to answer your question- if there is still joint liability you are both liable for the full debt so once you have your bankruptcy, she will be liable for the full debt. As it’s been 5 years she might consider checking her eligibility for a DRO if it isn’t a huge debt. (i’m assuming the house went in the first bankruptcy and she is not a homeowner).
It sounds like a complicated situation where other possibilities like Limitation might come in to play if the debt has been ignored for a long time. (12 years on the capital 6 on the interest) . You (or your ex wife) need advice I suspect.
Sara (Debt Camel) says
When you say mortgage arrears, do you mean arrears on a mortgage you have continued paying? Or a shortfall that has arisen from the sale of the property, either by you or when it was repossessed?
Are you still living in this house? If you are, do you want to carry on living there?
Neil says
I was discharged from my Bankruptcy 7 years ago, and out of the blue have just received a letter from a credit card company I thought was included in my bankruptcy
Can I get this added even though discharged?
If so how?
Sara (Debt Camel) says
You don’t have to do anything to get a debt added – everything legally was included even if you didn’t list it on your forms when you went bankrupt.
Just reply to the letter saying you went bankrupt on dd/mm/yy at such and such a court and give your bankruptcy reference number if you still have it.
Rachel says
My husband is going through the bankruptcy process at the moment I found out he had so much debt so not only has he ruined his marriage I’m worried it will effect Me or my address even though it’s my house ? Also when he completed the forms I fear he has not remembered all his debt as he has just got so much . Will bankruptcy clear all credit cards bank loans etc automatically or must they be declared
Sara (Debt Camel) says
It’s so difficult and stressful to find your partner has been hiding debt… all I can say is that he may have been doing this for misguided reasons, hoping he could sort it before you found out. Only you know if there is enough left of your relationship to survive this, money isn’t the most important thing in life even though it may feel like that at the moment.
Your credit rating will not be affected unless you share any accounts with him. The fact that someone who is bankrupt lives at the same address will not affect your score.
Your house – I assume this is just in your name? Do you have a mortgage? Did he contribute at all to the deposit for the house, or did you own it before he moved in?
If he has missed off some debts, then they will still be included in his bankruptcy as the article above says.
Debs says
My husband went bankrupt in April 2012 and was discharged April 2013. We have just done a credit search and there is still a debt on there for a loan of £19,000. The details show account opened June 2011, closed May 2013 but still shows the default balance of £19,000 with a default from May 2013. We forgot to include this on his bankruptcy do we need to do anything about it now?
Our property was sold to pay the debt we owed for bankruptcy with all the monies going to HMRC with nothing left over.
Thanks in advance
Sara (Debt Camel) says
That is a very large debt to have forgotten! The debt will have been wiped out by your bankruptcy even though you didn’t list it. Tell the creditor and ask for the default date to be changed to April 2012 and the balance owning changed to zero, see https://debtcamel.co.uk/credit-file-after-bankruptcy/ for details.
Gabriela says
I will go bankrupt very soon and i have a prepad account that i want to use afterwards for my salary and for my benefits to go in so i dont want it frozen. Do i have to tell the court about it? Will it be found and frozen anyway?
Sara (Debt Camel) says
Yes you do have to list this on the form. I haven’t been asked about a prepaid account before but my guess it would be frozen. This doesn’t usually last very long provided you don’t have much money in the account.
Is there a reason you want to carry on using this rather than get a new basic bank account?
Gabi says
Thank you for the reply. I just worry that i wont have any money coming in while accounts would be frozen. I work and get benefits.How long would an empty account be frozen for? How long does it take for this to happn once i apply online?
Sara (Debt Camel) says
If you tell the Official Receiver you use that account as you man account it should not be frozen for more than a few days unless there is a lot of money in it.
When you submit your bankruptcy application, this is almost always approved within 1 or 2 working days. So many people choose to submit an application a few days after their wages have been paid, so the possible freeze will all be over before the month’s wages. Of course this doesn’t work if you are paid weekly and benefits will be coming through at different periods.
But have a look at getting a basic bank account as a possible back up, see https://debtcamel.co.uk/bank-accounts-after-bankruptcy/
Farrokh says
I went bankrupt a couple of months ago and I had a paypal credit balance that was wiped out but they also closed my normal paypal account. Has this happened to anyone else? Is there any way of getting it reopened? I tried to look at the Paypal Credit Agreement but its link isn’t working anymore.
Sara (Debt Camel) says
I think you will need to ask Paypal if you can open an account which does not have a credit facility.
Farrokh says
Thank you Sara.
Carl says
I am going bankrupt in August 2018 , it gives me time to pay costs.
Can debt still chase me until I go bankrupt . Thanks carl
Sara (Debt Camel) says
Yes they can – what sort of debts are you talking about?
morris says
At 3:15am I finally took the BR plunge. I had gone over my form countless times to make sure it was all accurate. I am 28k in debt after losing a good job to I’ll health, a business that failed in its infancy and a breakdown in relationship resulting in an inevitable divorce.
Several questions that I probably just need yes or no answers to, u less you are willing to expand, I dont want to take up too much of your time –
1 will my estranged wife be affected? We have no shared accounts but I fear I am going to have a tirade of verbal abuse again for not informing her if she gets affected.
2 Will the OR want copies of past bank statements?
3 Will I need to explain all my expenditures?
My business didn’t run any debts with anyone other than myself, it was admin based so no product, just equipment and training that I paid for from redundancy money and the small bits that I earned, but it certainly helped me get into this financial difficulty, will the OR want to see my business expenses as well? I am now in receipt of benefits and PIP and the payments simply won’t cover all the unsecured debts. BR is my only option as I have no assets
Sara (Debt Camel) says
1. Her credit rating won’t be affected unless you have joint accoounts (mortgage, loans, bank accounts). If you had them in the past but are still financially associated, she needs to ask for disassociation. See https://debtcamel.co.uk/splitting-up-finances/
She is unlikely to be contacted by the Official Receiver unless some of your transactions look odd. Eg you gave or sold her something for less than it was worth. But if this was through a divorce settlement talk to your solicitor about whether there will be any issues.
2. Yes usually.
3. Yes and no. Unless it looks like there is something odd this doesn’t prove a problem form most people. And the longer ago, the larger an item has to be. You aren’t going to be asked to explain what you spent £70 on 6 months ago unless there were a lot of other similar expenses.
Re your business, I suggest you talk to Business Debtline about this, it’s common for business and personal affairs to be intertwined, see https://www.businessdebtline.org/EW/pages/default.aspx
Colin says
I went bankrupt in 2012 and forgot to list a plumber in my list of debtors I’ve now received a letter from the court chasing the money threatening a CCJ. What are my legal obligations?
Sara (Debt Camel) says
“a letter from the court” do you mean a Claim Form? See https://debtcamel.co.uk/court-claim-form/.
or a letter from a solicitor headed something like Letter Before Action/Claim? see https://debtcamel.co.uk/letter-before-claim-ccj/?
In either case you don’t have to pay, the debt was written off in your bankruptcy even if it wasn’t listed, but the action you need to take is different.
Colin says
I’ve had a letter but on looking at it, it’s not a letter from a court but a company making it look like it is. There is no claims pack etc just a claims form but a link to log in to. Making an offer to pay in instalments is a bad idea I’m guessing)
Sara (Debt Camel) says
If you are sure this is not a court Claim Form AND that the debt predates your bankruptcy, then you can simply reply saying that you went bankrupt on dd/mm/yy at xxxxx court, give your bankruptcy reference number, and say that this debt was wiped out by your bankruptcy and you will not be making any payment arrangements.
If you are not sure, then I suggest you talk to National Debtline on 0808 808 4000 on Wednesday and ask for their advice.
Colin says
I have no letter before a claim either just this letter a from the online civil claim service.
Sally says
Hi our new car in my partner name but I am the main driver & I am insured on it! That won’t be taken from my partner will it ? & if I don’t list all my creditors because some are from so long ago will the automatically included.
Sara (Debt Camel) says
If your partner bought the car or the car finance is in his name, it won’t be affected if you go bankrupt.
If a debt is the sort that is included in bankruptcy (not things like student loans, magistrates fines) then it will automatically be wiped even if you don’t list it.
Can I check you have talked to a debt adviser about this? Bankruptcy may be much your best option, but it’s always worth 30 minutes of your time to talk to an expert and make sure… call National Debtline on 0808 808 4000.
Heidi says
I am declared bankrupt but have a new council tax debt they are sending out enforcement agents and being threatening. Can I add this to my file?
Sara (Debt Camel) says
when did you go bankrupt? is this new council tax debt for this tax year or previous years?
Natalie says
Hi,
Please can you tell me if a debt to an energy company can be included in bankruptcy even if the supply is still in the previous tenant’s name. Should I inform the energy company of the date I moved in before or after the bankruptcy?
Also do you now if they could they cut the supply off without a chance to set up a new one – I have a new baby so don’t want to risk this.
Thanks
Sara (Debt Camel) says
how long ago did you move in?
it is a very long process to cut someone off – basically you have to refuse to have a pre-payment meter fitted – it’s not something a supplier rushes to do and would never do as “revenge” for you going bankrupt.
have you discussed whether bankruptcy is a good option for you with a debt adviser? If you owe less than £20,000 then there is a different option such a debt relief order that may suit you?
Natalie says
About 5 months ago.
Yes it’s more than £20,000 and I was advised by CAB to go bankrupt. They said I should find out who the the gas supplier is and tell them I’m living there before I apply so I know who to include in the bankruptcy then I can switch to a new supplier easily after if I want to. I’m just worried about getting cut off before that happens.
Sara (Debt Camel) says
Good advice from CAB & do go back to them if you have further problems. You really don’t need to worry about being cut off soon – when you tell thenm when you moved in, they will send you a bill, not cut you off.
Natalie says
Thank you very much for replying and putting my mind at rest , especially as its a Sunday. It’s very kind of you. I’ll do that.
Logan Putron says
Hi
Are overseas debts eg UAE legally enforceable here?
Thanks
Logan
Sara (Debt Camel) says
I suggest you talk to National Debtline on 0808 808 4000.
paul says
Sara this is going to probably sound like a ridiculous question. I am trying to get everything in place so i can go bankrupt. I am listing everything (debts to creditors) and things i can no longer pay (i.e phone contracts etc etc), the thing i want to know is with regards to Sky Tv i can no longer afford this obviously but do i just stop making payments to them, and then wait to be cut off. I ultimately want to get a much cheaper broadband/landline with someone else further down the line but ive read conflicting comments that Sky can block me being to do this?
Sara (Debt Camel) says
This thread looks useful on what happens when you cancel Sky: https://forums.moneysavingexpert.com/showthread.php?t=5814455
Gaia says
Hi, i went bankrupt 3 years ago.
I had set up a ltd company however the attorney made a very dirty job and most of the contracts ended up being under my name rather than the company.
The company was dissolved by company house after my bankruptcy.
Now, utility company for the premises where the business was never stopped calling and sending me bills.
I have always ignored them as I assumed that debt was cancelled too by the bankruptcy.
I received today again another bill for this month gas consumption (the premises were returned to the owner by the insolvency agent after my bankruptcy) plus 3 years arreas.
I went through email correspondence with the agent that looked after my bankruptcy, and in one of the emails she said that the energy bills were registered with the ltd company and so not covered by the bankruptcy (???) But as former company director they still chase me.
Does that mean that I find myself again in debt? Do I owe them the money? Can they ask to reopen the company and force me to pay as former director? Is there a way to stop them?
Please help…
Sara (Debt Camel) says
I suggest you talk to Business Debtline https://www.businessdebtline.org/. They will be able to sort out what you are still liable for.
Andy says
Hi. I went bankrupt few months ago. I included my paypal credit into bankruptcy. I received letter today that they were notified that I went bankrupt and I breath their agreement from secrion 15.4(c) but I can’t find what they mean. They ask me to pay paypal credit back otherwise they will go to court? I have bankruptcy order and I thought when I included it into bankruptcy it will be removed and wiped off. What shall I do now? Can they still made me to pay?
Sara (Debt Camel) says
They can’t take legal action for a debt that is included in your bankruptcy. And you are legally not allowed to pay them. I suggest you talk to your Official Receiver’s office who should confirm this. Then write back to them and say this.
If you get a Letter Before Action/Claim (see https://debtcamel.co.uk/letter-before-claim-ccj/ for what this letter looks like, it may have different titles) about this debt or a Claim Form from the court (see https://debtcamel.co.uk/court-claim-form/) come back here or phone National Debtline on 0808 808 4000.
Andy says
Thank you for the answer. There was No form included. Just a letter saying they are terminated my agreement and will try to recover debt.
I have one more question regarding included debts.
My sister was discharged from bankruptcy last year, she received an email from her old friend who borrowed her money few years ago and then they lost contact. He sent her an email saying he wants his money back now, she is still short of money and she can’t pay that. However she never included it into her bankruptcy. Can she still tell him she was made bankrupt two years ago and she can’t pay? Was this debt even if not included ligally wipped off? Thank you
James says
I was declared bankrupt in November 2019. At the time I had an agreement (done between me and my ex partners, and not having to involve their parties) to pay both my ex partners a monthly combined amount of just over £2300 for my four children.
I lost my job in November 2019 which was the main reason for me being bankrupt (unable to pay my debts). I was also suffering from depression. Right now I am behind by 3 months on the child maintenance payments due.
If I was to start a new job in January 2020, would any IPA the official receiver sets up take into account these child maintenance payments that are due?
Sara (Debt Camel) says
How much will you earn in your new job? Your child maintenance will need to be recalculated for that salary. The OR will allow normal levels of child maintenance as an expense before setting an IPA.
James says
I will earn roughly £6000 after tax per month on average which is inclusive of expected commission payments. It is also the same as what I earned last year.
The calculator on the child maintenance site has said £1670 is due in payments but I have always been paying the amount of £2300 for the past 3 years. The higher amounts are due to the fact one of the children is severely ill and in and out of hospital and requires extra care. One of the other children has a developmental problem which requires he needs additional help at home – books, e learning etc.
I don’t want my ex partners knowing about my bankruptcy and all the information I will provide to the official receiver will be completely correct. Is there a chance the official receiver will want to contact my ex partners? If so, will they say who they are?
Sara (Debt Camel) says
As there is no court order, I would expect the OR to generally follow the CM calculator site in assessing what is reasonable. At the moment that will only be a token payment as you are out of work and on benefits – you are claiming benefits I hope?
You can make out a case to the OR for your normal household expenses to include a larger CM payment because of your children’s health problems, I don’t think anyone will be able to tell you how likely that is to succeed, but if it is to have any chance I would suggest that you will need evidence about your children’s health problems and that will probably mean you asking your exs to provide that. I don’t know if the OR would want to talk to your exs, it would be unusual but you must have worked out that yours is not a run of the mill case. If the OR does talk to them, they would certainly say who they are and why they were asking. As third parties, the OR cannot make your exs co-operate and supply information.
You said previously you are behind with CM – unless you were before you lost your job, legally you aren’t. You have to assume your private agreement with your exs no longer applies.
Are your exs getting additional benefits for having children with health problems? They may have managed without before because of your generous CM but now I think I would suggest that you have to be honest with them about your situation, the fact that you are not going to be able to pay them “the arrears” and the fact they cannot assume that the payments from you will resume at the old level. Apart from the fact the OR may well set an IPA which would mean you cannot afford them, there must also be some chance that you will struggle in your new job because of mental health issues.
Aly says
I have several debts and am applying for bankruptcy. Some of my debts are in my previous married surname and some are in my current surname (remarried) On the BR form there is nowhere to put the persons name on the debt. Please can you tell me how I can make this clear as so far there doesn’t seem to be an option for this on the online BR form? Also on the BR form is there anywhere on the form where you can explain your circumstances? Thank you
John says
Hi. I went bankrupt two years ago. I’m discharged from bankruptcy atm. I forgot to includ debt which I had with a private person. It wasn’t secured debt, just normal private loan. He is chasing me now and threatening with court case. Was that debt legally wipped off as well? Even if not included in bankruptcy? I was told by Citizen Advise that only debt which were included in bankruptcy count, I’m in UK. Thank you
Sara (Debt Camel) says
Yes it was. If you ask your OR’s office, they should confirm this. You may find it helpful to ask them in writing eg by email so that you can show the reply to the creditor who is threatening you. If they start court action you can defend it in the bases that the debt is no longer owed.
John says
Thank you for quick answer. Is there any legal information somewhere or anything I can use to prove him that its also wipped off, he asked me if I included it in bankruptcy and he said he knows that if not then I still owe it. I will try to find contact to my OR thou. Thank you
Sara (Debt Camel) says
Going to your OR is the best thing to do. The OR should be informed as if they make any distributions to creditors, this other debt should be included.
Paul says
Hi. I have a repossession order on my house. To pay off the mortgage we are in the process of selling as we have equity in the house. Someone is trying to make me bankrupt over a disputed debt. I should win the case as it is quite dispute is very clear however if not, can the house be included in the bankruptcy even tho there is a repossession on the house. The mortgage company are fine with what we are doing as they get the debt paid. The house is 50-50 with the (soon to be ) ex wife.
Sara (Debt Camel) says
How much equity is there in your house? How large is the disputed debt? Do you have other debts as well?
Paul says
The equity is quite large, @130k. The debt being chased was 11k but the dispute is the amount. It should be under 5k but realistically they will owe me. They are currently under Investigation but not concluded. I have other debts which total about 60k not including the 11k and the fees they are trying to claim which is around another 40k.
Sara (Debt Camel) says
So your half of that equity will only just cover your other debts, excluding the one in dispute. How realistic is that equity figure? If the house won’t sell and you have to drop the price, you could be left with large debts anyway.
To answer your question, if you go bankrupt, your mortgage debt is included in bankruptcy, the repossession order makes no difference. But I think you need some urgent debt advice on this disputed debt (unless you already have a solicitor?) and the rest of your finances. I suggest you talk to National Debtline on 0808 808 4000.
James says
Hi
I’m declared bankrupt in Nov 19 from abroad. However, my previous named address is still getting letters and bailiff visits.
I am trying to get the letters over to me to investigate but is this possible?
Sara (Debt Camel) says
It’s hard to say much without knowing what the debt is. It could be a CCJ from before you went bankrupt (shouldn’t be happening) it could be a debt from before the bankruptcy that then went for a CCJ afterwards (shouldn’t have happened) or if you still have a property or your name is still on a tenancy it could be for Council tax… until you find out what it is it’s hard to guess…
Lana says
I went bankrupt in 2016. I did not forget any creditors or debts and was discharged in 2017. Now I have received a notification of application To seek consent to pursue a debt listed in my bankruptcy. My ex landlords solicitor is applying to the court for permission to pursue the debt as a counter claim in a claim for non protection of deposit that I have brought. I didn’t think this was allowed or even possible but I’ve seen that to pursue a former bankrupt for debts of bankruptcy, you must get permission from the court. What circumstance would the court be able to grant permission? Would filing a claim against the ex landlord for something completely unrelated to the debt, and automatically due in law, be sufficient to make the original debt payable again, so as to off set the fine they may be given? I’m really confused and quite concerned that they may be able to overturn my bankruptcy! Please help, I’m very grateful for any input.
Sara (Debt Camel) says
who advised you to bring this claim? does it relate to a period before your bankruptcy?
Lana says
I was advised by my solicitor (at the time) that a claim for compensation could be made due to the landlord not protecting my deposit. The non protection occurred in September 2013. Which was 2.5 years prior to my bankruptcy. The Claim was initiated by way of a letter before action which was sent Jan 2017 after my discharge from bankruptcy and then the claim made in sept 2019.
Sara (Debt Camel) says
So you don’t currently have a solicitor?
In that case I suggest you talk to National Debtline on 0808 808 4000. You may have 2 problems, the application for the court’s consent to pursue a debt that was listed in your bankruptcy and whether if you win the case any money will be claimed by the Official Receiver.
Lana says
I understand this are the issues I face, but what circumstances would a court grant consent? Is this likely? They have stated in the claim that they only wish to pursue the debt as a counter claim. So it would only be recoverable from any payment due to me? Would the money go to the OR? If so why? And if so, would they disperse the monies between creditors? Or direct to the ex landlord as a single payment? I don’t mind if this is the case, my claim far exceeds their counterclaim debt that was proved in bankruptcy before I was discharged, that they could and still can apply for from a guarantor for that debt. So by paying the debt this way it is fully paid?
If they get consent and win their counter-claim, would the payment due to them then consider their debt fully paid? Would that release the guarantor from any future liability?
I will call the debt helpline, I just haven’t been able to get any straight answers from them as yet. It’s a very complex issue with rules and laws coming out of my ears! I’m trying exceptionally hard as I’m litigant in person and so far have managed well but this new spanner in the works is not one I fully understand the consequences of. Thank you for all your help.
Sara (Debt Camel) says
Is this likely?
I don’t know. this is a very rare situation.
Would the money go to the OR? If so why?
Because it *may* be that the right to make this claim was an asset at the start of your bankruptcy that then became the property of the OR. That is what happen eg with a PPI claim. But I have never seen a case like the one you are talking about.
A guarantor adds another level of complexity.
Talk to National Debtline about this.
I’m litigant in person and so far have managed well
well apart from the two big problems you have. It may have been better to have used a solicitor.
Lana says
It would have been much better to use a solicitor but I just don’t have the funds, hence the bankruptcy. My worry is that I lose and now owe the same debt again that has already been proved in bankruptcy with no means of paying it and being in a position of having to consider another bankruptcy! It seems a worrying president to be setting? That appears to be the worst outcome possible? Is there any other outcome you can foresee that would be worse? If not I can live with the risk of this. Thank you again for all your help and advice
Sara (Debt Camel) says
I haven’t dealt with a case and they are very unusual – sorry I am not going to guess!
Lana says
I completely understand, to be truthful I didn’t realise it was a rare thing. I will just continue to see it through. Thank you again for all your help and advice, your website is an extremely helpful resource.
Lana says
Just wanted to update for reference. The application to pursue the debt post bankruptcy was withdrawn at the hearing. However the judge said very clearly in response that without some sort of fraud that the application would never be successful. The next day I received a full offer of withdrawal of their claim which I accepted.
Lana says
And completely forgot to mention that the withdrawal offer also included the penalty payment for non protection of deposit at 2 x deposit. The argument was suggested that the claim was invalid due to being vested in the trustee at bankruptcy, however I suggested that due to no actual loss, this could be considered as a personal claim and therefore would actually remain vested with me. I can’t lie, I was very surprised they didn’t push that angle, which I had expected them to do. However I am so pleased it is all over and done with without anything jumping up to bite me. I’m thankful I was successful as I realised after your help, that it could have gone horribly wrong and I shouldn’t have ever attempted this action alone!
Sara (Debt Camel) says
I am glad things worked out well for you.
Kerry says
Hi
I went bankrupt Sept 2019, I didn’t know you could add CCJs , but no I’ve read up that I could of added them , on checking my credit file there’s three other debts that I forgot to add, how can I get these added please or are they automatically added
Thank you
Sara (Debt Camel) says
Good news – they are automatically included in your bankruptcy. If you are contacted by a creditor for one of those debts, just tell them when you went bankrupt.
Kerry says
Thank you that’s great news
nicci says
I have found this information amazing on here , I too forgot one debt (credit card then sold to a debt collector) that I didn’t list on my bankruptcy in 2018. I was discharged in 2019 and too my absolute horror Capquest sent me an email a few days ago saying this debt was still payable it was from 2013 . I have given them all the bankruptcy numbers & information.
I have been worried sick over the past few days that because I didn’t list them I would still be made to pay this back. But after reading this it’s put me and my mind a rest that tgat debt has gone even though it wasn’t listed. I have also been in touch with my OR about this .Nic
Sara (Debt Camel) says
I hope this will be the last you hear about this old debt!
Phil says
Good afternoon
I went bankrupt in October 2020 and have just started receiving letters fro my old creditors & debt collectors about outstanding debts.
I’ll admit that I forgot to Include these in with the bankruptcy as they were from arrow global and the PRA Group.
All were before I declared myself bankrupt.
Do I still have to pay these?
Thanks
Phil
Sara (Debt Camel) says
If the debts date from before your bankruptcy and you forgot to include them on your bankruptcy application, they are still included in it. I suggest you write to the creditors informing them of the date of your bankruptcy.
Zoe says
Hi,
I have very recently gone bankrupt. Just over a month ago. I have a few queries. I did income and expenditure over the phone whilst at work and the guy rushed me as he didn’t want to speak when I was out of the office. they are now saying I need to pay £64 a month for next 3 years. I have asked if we can wait until next month to have a look again as the cost of living is on a huge rise. They have requested my pay slip in April. Paying the £64 a month or more will leave me with very little cash each month to play with, I was under the impression my bankruptcy would be over in a year, unsure why this will hang over me for 3 and why getting a pay rise or getting back on my feet will be on hold for the next 3 years as any other income I get I will need to inform them to pay more?! I’m on a very low income and already live in a room. I was hoping to go bankrupt and rebuild my life, rather now on hold for another three years. Would be okay with paying for the 1 years but 3 years just doesn’t seem right. Will they also want to monitor my bank etc? I feel more on the edge now than before.
Zoe says
Also, a ex work colleague just called to say they have received a letter from the courts chasing me for debt at my old old workplace. They think it’s my previous landlord. This debt wasn’t put on my bankruptcy, how do I go about this please? Confused as the courts should know I am bankrupt. Can I still include this?
Any other bankruptcy advice would be really appreciated. Thanks in advance for your help.
Sara (Debt Camel) says
That sounds as though an old landlord may have gone to court for a CCJ?
Have you looked at your credit record recently, is there a new CCJ on there? Does your credit record have your old address linked to it?
This won’t be a problem, the debt will still be included in your bankruptcy, but you need to know what has happened so you can tell them. And also tell your Official Receiver 9who isn’t going to mind but needs to be told).
Sara (Debt Camel) says
You will be discharged from bankruptcy in a year. But if a monthly payment arrangement is set, it lasts for 3 years. The payment is flexible, so if your expenses go up, it will drop, to zero if need be. Whoever gave you advice on bankruptcy should have described this to you.
So the important thing is to get it right at the start. You should not have felt rushed going over your expenditure. You may have m,issed off things you are allowed such as haircuts and a small amount for holidays.
You could phone National Debtline now on 0808 808 4000 and say you would like to talk this through as you are worried you may have missed stuff off as you don’t think you have £64 a month spare. Or you could post on the MSE bankruptcy forum: https://forums.moneysavingexpert.com/categories/bankruptcy-living-with-it
You should also try to work out now how much things are going up in April – council tax, water, energy bills, bobile, broadband etc
Laura says
Hello Sara. Bankrupt in UK – debts in EU. After 4 years now I’m chased by debt collector’s for utility bill which wasn’t included to application. Utility bill apear before Bankrupt
and EU court decision after bankruptcy. Bankruptcy was before brexit. Do I need to pay? Or need to contact official receiver and add that ?
Thanks Laura
Sara (Debt Camel) says
I suggest you talk to National Debtline about this and what to say to the debt collector.
Susan says
I’m thinking of going bankrupt with the advice I have received from CAB. I registered all my debts with them but I have a long ago debt with two credit card companies that I had in a previous marriage that was included in a IVA with my ex-husband’s debt. My ex-husband died in 2017 and then I started getting letters for the debt that I owed. At the time I ignored them and the letters stopped coming. I have moved and re-married and the letters have started again. They actually go to my neighbor because the address isn’t quite right and they address in my old name so I’ve been sending them back as ‘unknown’ till I know what the best thing to do. Those two debts are not on my credit file but should I include them on my bankruptcy form?
Sara (Debt Camel) says
do you know if the IVA completed?
Susan says
No it wasn’t because I was called by the IVA company to say that my debt was still payable
Sara (Debt Camel) says
In that case the simple thing is to list any debts you had in the IVA on your bankruptcy application.
If you miss one off, it will still be wiped out by your bankrup[tcy – but then you will have to explain to the creditor that you have gone bankrupt.
Susan says
Thank you Sara
David Bean says
Hi Sara. Bit of background…I declared myself bankrupt on 03/03/2020 so I’m discharged and have my certificate. My Dad passed a few weeks later and I was named in his Will to be given a third of his beneficial interest in the family home. However, my parents were TIC and there’s a Form A Restriction on the house. My Dad’s beneficial interest is held in Trust so my Mum has a life interest in the house. The OR has stated that I didn’t receive an inheritance whilst bankrupt. My Dad’s Will also said that I was to pay back from my inheritance any money I owed. My brothers are working to get as much as possible from me when our Mum passes and are practically going back to my birth. My Mum has said that as they have had money and aren’t obliged to do the same then I shouldn’t have to either….it was all gifted. However, my brothers are now saying it’s a debt and are attributing every cash withdrawal to me! So as I went bankrupt and they are calling it a debt does this mean they can only go as far back as my bankruptcy filing date please? Many thanks. Dave
Sara (Debt Camel) says
I think you need legal advice on this. It may depend on the wording of the Will and needs an expert to look at it. I suggest you go to your local Citizens Advice – they have access to the National Specialist Debt Advice Service. If you can’t get a clear answer that way, I can give you the nname of a solicitor that specialises in insolvency but that would cost you money.
Arita says
Hi . I just recently went for bankruptcy this year 27 February , still everything is in process , just been awarded for bankruptcy . I receive letter from debt company but I have not listed because I forgot . I’m very new in all this and very embarrassed to call the bankruptcy and ask to put in the list what o forgot . When I let the debt company know that I’m bankrupt and gave them the reference nr and the date I was awarded they said have not been able to locate my bankruptcy . What should I do now ? Thanks in advance
Sara (Debt Camel) says
Well you can check yourself if your bankruptcy has been added to the Register https://www.insolvencydirect.bis.gov.uk/eiir/IIRRegisterNameInput.asp?option=NAME&court=ALL and send the creditor a screenshot of that.
But really you should also let your Official Receiver’s office know that you have missed a debt off. It isn’t a problem, they just need to know.
JMBN says
I’m currently bankrupt. I’m now less than 65 days from automatic discharge. I’ve had very little contact with OR since start of 2023 to be honest but hopefully it stays the case no unexpected late surprises that may cause my bankruptcy to extend. Would there be a deadline to ‘add’ a debt to my bankruptcy application?
I have a tesco ‘overpayment’ debt for example which dates from shortly before I went bankrupt. I also have a mobile phone debt that was originally taken out 3 months before I went bankrupt. That mobile phone bill is showing my ‘birth’ surname though, not my current legal surname? Does that mean it could be added to my bankruptcy anyway? Thank you if I get a reply.
Sara (Debt Camel) says
These debts are already included in your bankruptcy as they predate your bankruptcy, you just didn’t list them on your application so the OR never informed the creditors about them.
I am not sure what the “tesco overpayment debt” – but the same applies to all debts except for the few that can’t go into bankruptcy eg student loans, magistrates court fines.
I suggest you send details of the two debts to the OR – they won’t mind, this is pretty normal. If the OR is not aware of your previous surname, explain about that.
And a few months after your discharge, you need to check that those two dates have been correctly marked as defaulted at the date your bankruptcy started. See https://debtcamel.co.uk/credit-file-after-bankruptcy/.
Dave says
Hi Sara. I declared myself bankrupt on 05/03/20. My Dad passed a month later and I was named in his Will. This part is sorted out because due to my parents being TIC and there being a Form A restriction on their house I didn’t receive an inheritance. However, my brother (executor of both parents Wills and financial LPA for my Mum) seems to be under the impression that he can go back as far 40 years and claim that I have to pay back every penny my parents gifted me. He’s effectively creating an as yet undisclosed amount of debt that he can recover and then split in two for his and my other brothers personal gain. He wants to ruin me and make sure, and by whatever means possible, that I don’t get anything at all. Surely he can’t just pull a figure out of a hat and create a debt now that was never a debt and which goes way back prior to my bankruptcy? How could I include a debt on my bankruptcy if I didn’t know it existed?
Sara (Debt Camel) says
So you are concerned about your inheritance from your mother? Has she died?
Dave says
No, she’s still going strong. My concern is that my brothers are trying to make me pay back money gifted to me throughout the 40 odd years when they won’t be doing the same. They’re saying I have to pay it all back when she does pass away, which means it’s now a debt but I was declared bankrupt 3 years ago so all my debts were written off.
Sara (Debt Camel) says
If these “gifts” were loans, then the resulting debt would have been cleared by your bankruptcy.
There may be some legal arguments that any inheritance should be reduced because of these gifts or loans, but I cannot advise on this.
And of course if your mum changes her will to reduce what is left to you because of previous gifts, then that is her decision (unless there is any question of undue influence).
I’m afraid you may need to consult a solicitor at some point.
Jim says
I had an issue with my energy supplier and there is a large debt that has been sent to my landlord. The energy Company are rectifying this and moving the the debt to me, but it’s been over 3 months now and I really need to action my bankruptcy. Can I go bankrupt even though this debt hasn’t been moved over to me yet, which means it will be transferred to me after I’ve gone bankrupt?
I also don’t know the amount yet as it’s in dispute and hasn’t been transferred to my account yet?
Obviously this is for historic usage so I would hope it’s still covered by bankruptcy regardless?
Sara (Debt Camel) says
Have you taken debt advice about going bankrupt?
Jim says
Yes I have and it’s the only viable option for me now unfortunately but just worried about the energy debt. Been waiting for it to be resolved but really can’t wait much longer.
Sara (Debt Camel) says
I suggest you talk to the debt adviser about this. They may suggest a breathing space is better so the energy debt is moved. Or they may reassure you that the debt will be covered even if you can’t list on your bankruptcy application.
Nicky says
Hi
I am going through MAP bankruptcy application and have just realised I have outstanding on my telephone handset, I have not included this a debt as I am not in arrears. What will happen please?
Thanks
Sara (Debt Camel) says
Hi Nicky – I assume you are in Scotland? Can I ask you to post your question on this Scottish debt blog please? https://www.advicescotland.com/what-is-a-minimum-asset-bankruptcy/
Anonymous says
My tenant went bankrupt over 7 years ago. Today we had a hand posted card with telephone number. Collecters from 2003 for debt from a credit card. Is this legal?
Sara (Debt Camel) says
the debt would have been included in the tenants bankruptcy. If the debt collector is given the details, they should stop asking for payment.
Are you just curious or are you still in contact wit the tenant?
BOB EVANS says
I went bankrupt february 2024.
I have a letter from a debt collector saying they have a ccj dated April 2024.
The debt they are chasing was virgin money who sold the debt on.
Both Virgin money and the debt company were included in my petition to OR office in February.
Where do I stand now. It will cost me £225 to get the judgement set aside .
I spoke to the debt agents and they said that the ccj has to be paid or they will send bayiiffs
Sara (Debt Camel) says
Tell your Official Receiver.
They can’t send round bailiffs. If you get a letter from a bailiff, just tell them the details of your bankruptcy.
Bob Evans says
Thank you.vrry much appreciated