Can a discharged Bankrupt reclaim bankcharges

[alibongo]

Hi, can someone please let me know, am I able to reclaim my bank charges after being bankrupt, I made myself bankrupt and it lasted 2 years, I was discharged last May, any help appreciated, thanks in advance

[lucid]

I personally don't see why not, but I may not know enough about it.

Lucid

[alibongo]

I checked the faq's and cannot seem to find a definitive answer

I've said here a few times I do not believe that a bankrupt has any claim on funds pre-bankruptcy more so when the creditor has lodged a debt in bankruptcy.

My reasons are many and I will try to outline them now.

First and most importantly we must consider the courts position to bankrupts this can most easily be summed up by the courts main get out clause when they do anything involving bankrupts.....

“Every bankruptcy is under the general control of the court and, subject to the provisions in this Group of Parts, the court has full power to decide all questions of priorities and all other questions, whether of law or fact, arising in any bankruptcy.”

1. I believe that to do it correctly you would have to challenge the proof of debt lodged in bankruptcy (it should be noted that you have £0 cost protection for this type of action regardless of value) by the banks and the court would have to decide the matter. This could have one of 5 outcomes, (i) the application is dismissed by the courts, (ii) you win, (iii) you lose, (iv) the bank withdraw their poof of debt, (v) or the bank amend the proof of debt to take into account the sum challenged (note I do not say claimed as it is not a claim) by yourself.

What worries me here is that we are not talking about agency solicitors attending court but a full legal team comprising Solicitor and Barrister and then the office costs which if you lost on i or ii would be payable by yourself in full forthwith. I would expect to see them try to have the application dismissed and I honestly believe even to get past this point you would need a legal team who would require you to pay in full beforehand (a guess at a figure would be circa £7k). If you got past this point at any time the lawyer could simple stand up and walk to the court office in the same building and withdraw or amend the proof of debt. Then it would simple be down to costs.

2. If you should try to sue the bank in county court, I would expect the bank to inform the court that you where adjudged bankrupt on such and such day and they have lodged a proof of debt in the estate. I have to be honest here I do not know how the court would deal with this but I would not expect a good outcome it would all depend on the Judge on the day but do not be surprised if you here this is an "insolvency matter" that should be dealt with by an application to examine the defendants proof of debt, dismissed and costs. Even if the court was willing to hear the case (district judges can not hear applications to examine the proof of debts) it would be very unsafe, and lastly if the bank got their thinking head on and wanted to avoid court for the same old reasons they could simple do iv or v from above and inform the court.

to sum up unless the amount is greater then what is lodged in the banks proof of debt regardless of age I would not expect to see any money in fact legally I do not see how you can. Plus I hear everyone say wait to you are discharged I will take this opportunity to say this does not affect the proofs of debts lodged which always remain in place unless paid in full.

[alibongo]

Thanks for the detailed response, so you are basically saying that even though I am discharged it would not be worth it.

did the bank lodge a proof of debt form in the estate?

[lucid]

Thanks Zooman.

I've just discovered I know absolutely nothing about being bankrupt at all. Sorry alibongo, I hope I didn't give you any false hope.

Lucid

[alibongo]

Sorry but I do not know what a proof of debt form is

OK get hold of the insolvency service (0845 602 9848 ) and ask for a copy of the proofs of debt. Then come back here and let me know if they lodged. Also please take 5 minutes to read this and understand it.