Hello I have just asked this question on your sister site but probably should have asked here instead. My question is this. If an unsecured credit card debt is sold on to a debt collection comapny can they petition for bankruptcy straight away or do they have to obtain a CCJ first before taking this route. Many thanks.
Just to clear up the misconception here - a creditor does not need to go down the CCJ route before petitioning for bankruptcy - a CCJ is just another route for collecting on a debt.
You would have already been issued with a default notice by your creditor before 'selling the debt on' to the collection agency therefore the agency can go ahead and petition for bankruptcy but would have to give adequete notice of this step. Most collection agencies having bought the debt for a much smaller amount that the outstanding balance will as a rule be far easier to negotiate a repayment plan with.
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
Hi Thanks for reply - sorry to confue but sent original message as guest have now registered. So how much would it cost a creditor or debt collection company to make me bankrupt. Would that company have an advantage over any other creditors if they did or are all assets shared evenly. Thanks again
I think that it costs about £2k for a creditor to declare someone BR, which is why is very rarely happens.
I am not sure whether the creditor that declared you BR would receive preferential treatment if you had any assets but one of the experts will be able to confirm this.
No, the petitioning creditor gets no preference with regard to assets etc, but if a distribution is to be made to creditors from funds made available to the OR - the petioning creditors costs (for bankruptcy ) would be repaid (but distributions are few and far between!)
Melanie Nicholas 28 years insolvency experience - 23 of which in the Insolvency Service - Insolvency Manager Jones Giles email me at melanienicholas@jonesgiles.co.uk
If an unsecured credit card debt is sold on
Posted - 22 July 2009 : 04:54:50
