HELP! Bankruptcy and who will deal with my case?

[thesilverspoon]

Hi there,

my husband and i will be making ourselvesf bankrupt,

but i need to ask who will deal with the bankruptcy after we have filed for it

(my debts total several hundred thousand pounds, repayment of directors loans for our previous LTD company, which we can never repay)

 

We have have no assets, no savings, on benefits and live in a private rented house , on housing benefit. my husband is on ESA due to mental health problems.

 

Will the official receiver oversee it or can the major creditor ,( who happens to be a nasty piece of work) apply to be the trustee?

 

I keep reading if there are no assets, then the OR will act as the trustee himeslf.

Edited October 28, 2015 by thesilverspoon

[ismylife]

I'm sorry I don't know but found this info for you

 

https://www.r3.org.uk/media/documents/.../Creditors_bankruptcy.pdf

 

Once a bankruptcy order is made, the court will usually appoint the

Official Receiver to administer a bankrupt’s estate. The Official

Receiver is a civil servant and an officer of the court.

 

The Official Receiver must then decide within twelve weeks of the bankruptcy

order whether to call a meeting of creditors to appoint a licensed

insolvency practitioner to act as trustee in bankruptcy (trustee).

 

In certain circumstances the Department of Trade & Industry (DTI) or

the court may make such an appointment.

 

This guide assumes that a licensed insolvency practitioner has

been appointed trustee.

 

So it may depend on what the OR decides and whether the other party is a licensed insolvency practitioner.

 

You would have nothing to lose by approaching the OR to ask about this and if the other party is an LIP, to ask that they are not appointed as trustee.

 

I'd have thought that it would be a conflict of interest for them to be appointed, but then again, I don't know how this works.

[f16]

It will be the OR who will deal with this for you.

 

Once this is done the "millstone" around your neck will be gone

It will show on your credit rating for 6 years then that will be clean.

 

I wish you the best of luck

[stu007]

Hi

 

The OR is generally appointed at your Bankruptcy Hearing when the Bankruptcy Order is made.

 

What the OR may decide is to call a Creditors Meeting:

 

Creditors Meeting

The Official Receiver may request a meeting of creditors, and if so, you will be required to attend. At this meeting, the creditors may decide to appoint an insolvency practitioner as the trustee of your bankruptcy, who would be responsible for raising cash from your property (if relevant) and other assets.

 

Please note who they appoint is an Insolvency Practitioner as the Trustee who still has to follow the Bankruptcy Order to the letter the same as the OR would.

 

In short an Insolvency Practitioner (IP) is someone who is licensed and authorised to act in relation to an insolvent individual, partnership or company. Most IPs are accountants or insolvency specialists working in firms of accountants.

 

These links may be useful:

 

Insolvency Service

https://www.gov.uk/government/organisations/insolvency-service

 

Declaring bankruptcy or being made bankrupt

https://www.gov.uk/bankruptcy

 

Guidance for Potential or Current Bankrupts

https://www.gov.uk/government/publications/guide-to-bankruptcy

 

Bankruptcy what happens when you are interviewed by the official receiver?

https://www.gov.uk/government/publications/what-happens-when-you-are-interviewed-by-the-official-receiver

 

Bankruptcy restrictions orders

https://www.gov.uk/government/publications/bankruptcy-restrictions-orders

 

Law Centres Network

http://www.lawcentres.org.uk/

 

National Debtline

https://www.nationaldebtline.org/

 

Find your Credit Union

http://www.findyourcreditunion.co.uk/home

 

Citizens Advice

https://www.citizensadvice.org.uk/

 

Samaritans

http://www.samaritans.org/

Edited November 3, 2015 by stu007