suzanne

[suzanne4031]

In August 2011 I was declared bankrupt upon the insistence of Rickerbys Llp Solicitors. There was a dispute over billing when representing me in an employment tribunal. The final bill was £19,000. Rickerbys became hostile and difficult to my list of concerns and adopted the tone 'no comment'.

 

It was a particularly stressful period as my former employer had placed me under a high court injunction and my legal case for wrongful dismissal was transferred to Jersey. I was struggling to make contact / any response from Rickerbys Re: Billing concerns. I desperately wanted to discuss my concerns and resolve payment. My home had been on the market and I was completing the final stages of the sale (clear profit of £120,00.) when I was shocked to discover Rickerbys had aggressively pursued and petitioned the courts to adjudged me bankrupt.

 

It all seemed to happen so quickly.

Consequently I sought a solution and was successful in obtaining an IVA. Through the sale of my home I had sufficient funds to clear my debt of £19,000 to Rickerbys. In November 2011 - 3 months after being declared bankrupt the IVA company contacted Rickerbys and guaranteed them immediate payment in full - 100p to the pound. Rickerbys refused IVA payment in full. Point blank refused. I made contact with a senior partner of Rickerbys, Anne Compton who refused to discuss the matter and repeated the statement 'no comment'.

 

I was shocked and distraught. Unfortunately KPMG were assigned trustees to my estate and to date their financial charges have tripled my initial debt. Nearly 2 years after Rickerbys refused the IVA the investigation by KPMG continues. I have been forthcoming and honest with all my assets yet KPMG are still racking up charges. I find it appalling that a legal firm who specialises in human rights has inflicted unnecessary pain and suffering + financial ruin.

 

 

I would like to dispute Rickerbys decision in refusing the IVA. They had privileged and sensitive information when representing me.

 

They knowingly effected (negatively) my chances of a fair outcome with my continued on going court case for wrongful dismissal. The restrictions of bankruptcy (emotionally, financially) severely hindered my strength to represent myself. Does anyone have any suggestions or thoughts on my situation? I feel victimized.

Edited November 28, 2013 by citizenB

[Lookingforjustice]

I am not surprised you feel victimized. You story is very distressing. I think what has happened to you is appalling.

 

I would complain to the law society. You seem to have two issues one the manner in which Rickerbys represented you and secondly their actions taken in relation to your account. I believe the no comment from your solicitors is because they are anticipating some form of legal action.

 

You mentioned your ongoing court case. Are you appealing the tribunal decision? Or do you mean ongoing at the time. ie the Unfair dismissal which was not decided in your favour? If you are appealing the tribunal decision you can apply through Citizens Advice Bureau or your local MP to the National Pro Bono Unit or the Free Representational Unit (limited coverage in the UK) for assistance. For both you need to apply in advance and already have a court date. Rickerby's cannot refuse to provide you with copies of your paperwork held by them if it will prejudice your ongoing court case. I only mention this but unless you have already appealed the decision I believe you will be out of time to do so and it seems a long time if you have not to have had the appeal heard.

 

I don't know if there is any way to undo the bankruptcy situation but it seems very vindictive of the solicitors to have pursued the bankruptcy so rapidly. Once bankruptcy has been declared then there are preferential creditors ie HMRC etc who all have to be paid first before the other creditors before remaining monies are paid out so maybe once you have been declared bankrupt, the solicitors cannot accept payment direct.

 

If the solicitors knew you were in the process of selling your house to pay their bill and didn't declare it to the court when making you bankrupt you may have a case against them but without funds I think you will have a hard time pursuing it through the courts. So the Law Society complaint may be your best option. I would also notify my local MP and anyone else who will listen. You should consider the local press. I don't know if this course of action will now force you onto state benefits where that wouldn't have been necessary before but I think that is very relevant when companies resort to unnecessary civil action. Any correspondence/emails with the solicitor where you have explained how and when you would be settling the bill would be helpful to your case.

 

Maybe it would be worth visiting a no win no fee solicitor to see if you have a personal injury claim against the solicitors but from what I know of these companies is that they only allocate about £650/£750 worth of funding to each case which is hardly enough to do anything let alone well. They may not be willing to take on a firm of solicitors (unless maybe your complaint to the Law Society is upheld). I would try anyway to see what they advise.

 

KPMG should have to justify their charges. Two years does seem a long time if your financial affairs are not complex.

 

In July 1996 in a report Access to Justice, Lord Woolfe proposed changes to the system which would give us a 'rolls royce' civil litigation system. In fact if you want access to justice you need to be able to afford one. IMHO our justice system is only for the rich and nothing highlights the divide between 'the haves and the have nots' today as in our current justice system. It's system administered by the rich for the rich. If you don't have money then in my experience you will not get the justice you are seeking.

 

I think once you taken advice from where you can, you have a plan for your future. It may be hard now but unless you can take something positive away from this situation I think it will be hard for you to move on. I suffer chronic depression. None the less, your experience may help others in deciding what to do in their situation. Writing about what happened to you may well be cathartic. Finding the right solicitor to represent you is like a crapshoot and you have no choice if going though an insurance company.

 

I hope someone else will come along and provide something more substantive advice in relation to the bankruptcy.

 

If you are back in employment or have an income you may like to look at 'rent to buy properties' as a way of getting back on the property ladder which is based on affordability and not solely on credit referencing. I wish you good health and every success for the future

[BazzaS]

In August 2011 I was declared bankrupt upon the insistence of Rickerbys Llp Solicitors. There was a dispute over billing when representing me in an employment tribunal. The final bill was £19,000. Rickerbys became hostile and difficult to my list of concerns and adopted the tone 'no comment'. It was a particularly stressful period as my former employer had placed me under a high court injunction and my legal case for wrongful dismissal was transferred to Jersey. I was struggling to make contact / any response from Rickerbys Re: Billing concerns. I desperately wanted to discuss my concerns and resolve payment. My home had been on the market and I was completing the final stages of the sale (clear profit of £120,00.) when I was shocked to discover Rickerbys had aggressively pursued and petitioned the courts to adjudged me bankrupt. It all seemed to happen so quickly.

Consequently I sought a solution and was successful in obtaining an IVA. Through the sale of my home I had sufficient funds to clear my debt of £19,000 to Rickerbys. In November 2011 - 3 months after being declared bankrupt the IVA company contacted Rickerbys and guaranteed them immediate payment in full - 100p to the pound. Rickerbys refused IVA payment in full. Point blank refused. I made contact with a senior partner of Rickerbys, Anne Compton who refused to discuss the matter and repeated the statement 'no comment'. I was shocked and distraught. Unfortunately KPMG were assigned trustees to my estate and to date their financial charges have tripled my initial debt. Nearly 2 years after Rickerbys refused the IVA the investigation by KPMG continues. I have been forthcoming and honest with all my assets yet KPMG are still racking up charges. I find it appalling that a legal firm who specialises in human rights has inflicted unnecessary pain and suffering + financial ruin.

I would like to dispute Rickerbys decision in refusing the IVA. They had privileged and sensitive information when representing me. They knowingly effected (negatively) my chances of a fair outcome with my continued on going court case for wrongful dismissal. The restrictions of bankruptcy (emotionally, financially) severely hindered my strength to represent myself. Does anyone have any suggestions or thoughts on my situation? I feel victimized.

 

I'm confused as to the timeline.

The bankruptcy was in August 2011?. Was this "bankruptcy sought" or "bankruptcy declared & gazetted"?

You tried to obtain an IVA in November 2011, 3 months after the bankruptcy?.

 

It seems from your post that the IVA was sought 3 months after you were declared bankrupt. I would be surprised that an Insolvency Practitioner would attempt this without referring to the Official Reciever.

 

How were you "successful in obtaining an IVA" without a creditor's meeting / 75% of the creditors accepting it?

 

If KPMG are "still investigating" : are they suggesting your disclosures have been less than full?

If that were stated by the Trustee to the Official Reciever, that would likely be fatal to any application for a fast-track voluntary arrangement ("post-bankruptcy IVA").

https://www.gov.uk/options-for-paying-off-your-debts/fast-track-voluntary-arrangements

 

I'm not surprised the creditor refused to comment : I would expect the most they would say is "we can't discuss this now you are bankrupt, speak to your Trustee in Bankruptcy" if they chose to go beyond "no comment".

Did it get as far as a creditor's meeting being advertised / held?.

 

The firm seeking an IVA on your behalf knew you were already bankrupt??

 

When was your home sold ?. If before the bankruptcy could you have just settled the debt?

If sold after the bankruptcy : it was no longer yours to sell, without leave of the Trustee in Bankruptcy.

 

Curiouser and curiouser.

Edited November 28, 2013 by BazzaS