| T O P I C R E V I E W |
| tim1010 |
Posted - 15 August 2010 : 20:50:26
Hi,
I have a short question. When I am bankrupt will the bankruptcy proceeding interrupt or stop lawsuits from creditors against me ?
If yes, where can I find the legislation.
Thank you,
TIM |
| 12 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 16 August 2010 : 12:23:26
Hi Tim
Understand from reading thread that your initial question is about an unsecured debt, some good advice has already been given.
the only thing that i can think of that will frustrate your actions
is if the creditors decides to make an unsecured debt secured against you property. (if you have one and if you are deciding to keep after bankruptcy)
again this comes back to timing and being aware how far along the line the creditor is, this may be something to take guidance over
regards Richard |
| tim1010 |
Posted - 15 August 2010 : 22:07:21
I have found some text :
11.— Effect of order.
(1) On the making of an administration order—
(d) no other proceedings and no execution or other legal process may be commenced or
continued, and no distress may be levied, against the company or its property except with
the consent of the administrator or the leave of the court and subject (where the court gives
leave) to such terms as aforesaid.
I think this is what I mean. Could be ??? I am not sure. |
| debtinfo |
Posted - 15 August 2010 : 22:01:35
I think you are looking for something that is not written how you want to read it. You have to follow this train of thought.
1. The above paragraph says that if the action occured before the bankruptcy then it is a bankruptcy debt.
The action is not when they took you to court but when you did whatever it is that you did that they are taking you to court for. That action has already happened and si is very definitly before the bankruptcy.
3. Therefore any resultant amount you had to pay is a bankruptcy debt and therfore you will not be liable for it.
4. The amount cannot be recovered from you as the bankruptcy order protects you from any creditor taking action against you for a bankruptcy debt. |
| tim1010 |
Posted - 15 August 2010 : 21:50:56
Thank you for your reply. No this action was not planned before BR. But I want to tell this creditor that we don´t need the appointment on the court. And I would like to know if there any legislation where I can read if the lawsuits will be stopped. |
| Housing |
Posted - 15 August 2010 : 21:44:19
Excellent advice - cannot add anything to this - hope it assists and good luck, Richard
quote:
Originally posted by debtinfo
This is what constitutes a bankruptcy debt
40.7 Bankruptcy debts
"Bankruptcy Debts" [Note 8] are defined as:
Any debt or liability to which the bankrupt is subject at the commencement of the bankruptcy,
Any debt or liability to which the bankrupt may become subject after the commencement of the bankruptcy (including after his/her discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy,
Any amount specified in any criminal bankruptcy order made prior to the commencement of the bankruptcy. (The power to make criminal bankruptcy orders was abolished by the Criminal Justice Act 1988 so it is unlikely that the official receiver will come across such debts.)
Where a bankruptcy debt bears interest, the interest due up to the date of the commencement of the bankruptcy [Note 9].
The second one is what you are talking about where you did an action before the bankruptcy order which is yet to be determined and for which you may become liable for after the bankruptcy date
It is section 322 (2) of the Insolvency Act 1986
"There are no problems - only solutions" |
| debtinfo |
Posted - 15 August 2010 : 21:31:14
This is what constitutes a bankruptcy debt
40.7 Bankruptcy debts
"Bankruptcy Debts" [Note 8] are defined as:
Any debt or liability to which the bankrupt is subject at the commencement of the bankruptcy,
Any debt or liability to which the bankrupt may become subject after the commencement of the bankruptcy (including after his/her discharge from bankruptcy) by reason of any obligation incurred before the commencement of the bankruptcy,
Any amount specified in any criminal bankruptcy order made prior to the commencement of the bankruptcy. (The power to make criminal bankruptcy orders was abolished by the Criminal Justice Act 1988 so it is unlikely that the official receiver will come across such debts.)
Where a bankruptcy debt bears interest, the interest due up to the date of the commencement of the bankruptcy [Note 9].
The second one is what you are talking about where you did an action before the bankruptcy order which is yet to be determined and for which you may become liable for after the bankruptcy date
It is section 322 (2) of the Insolvency Act 1986 |
| tim1010 |
Posted - 15 August 2010 : 21:26:14
Is there a legislation I can read this. This would help me. Thank you |
| debtinfo |
Posted - 15 August 2010 : 21:24:00
Yes this is covered by the bankruptcy, One of the first questions the OR will ask you is if there are any outsanding court actions so that they can write and inform the court of the bankruptcy |
| tim1010 |
Posted - 15 August 2010 : 21:19:32
Yes it is a lawsuit of a outstanding craftsmen bill.
I got a court appointment about this case, but it have been overlapped with my BR. Now i want to tell the court and the solicitor that I am BR. But I am not sure if they stop the lawsuit. The creditor was informed about my BR. |
| debtinfo |
Posted - 15 August 2010 : 21:12:28
What sort of lawsuit, simply just to pay the outstanding debt? |
| tim1010 |
Posted - 15 August 2010 : 21:02:40
Hi,
yes, I mean creditors with unsecured debts. If there are current lawsuits I was indicted to pay my debts.
Will this lawsuits stopped ? |
| Housing |
Posted - 15 August 2010 : 20:54:12
Hi
Are you meaning creditors of unsecured debt that are included in your BR?
Let the forum know exactly what you mean and we will, I am sure, be able to offer advice and guidance
Richard
"There are no problems - only solutions" |
