Bankrupt ! Can I still reclaim Bank Charges???

[lyn-marie]

Does anyone know the situation arround claiming bank charges back if one has been forced down the sad road of bankruptcy ??? My financial advisor will propose to the court that I get a reduced amount (£15,000 reduced) to repay my mortgage to make it possible. If that goes through... am I still - or not - in a possition to claim the unfair charges? They were certainly not responsible for my present financial MESS but the banks monthly £500 charges, because I am in such a mess, have not helped!!! to say the least... please offer advice because I do not know. If I claim and get it... will it be just deducted from the £15,000 anyway - so would this be a waste of time? Thanks.

[gizmo111]

Originally Posted by lyn-marie

Does anyone know the situation arround claiming bank charges back if one has been forced down the sad road of bankruptcy ??? My financial advisor will propose to the court that I get a reduced amount (£15,000 reduced) to repay my mortgage to make it possible. If that goes through... am I still - or not - in a possition to claim the unfair charges? They were certainly not responsible for my present financial MESS but the banks monthly £500 charges, because I am in such a mess, have not helped!!! to say the least... please offer advice because I do not know. If I claim and get it... will it be just deducted from the £15,000 anyway - so would this be a waste of time? Thanks.

I don't understand what you mean by reduced amount. And are you not already claiming charges?

[emijen]

I was made bankrupt in February so i am still undischarged, as my bank was left with my debt i wondered where i stood on trying to claim my charges back?

[minnie]

Hi lyn-marie & emijen,

lyn-marie, I must admit I don't understand what you mean by 'a reduced amount' either, maybe you could explain further. Are you saying that you were in debt to the bank by £15,000 at the point of bankruptcy or are you not yet bankrupt? Also, haven't you already started claiming charges back?

Regardless, whilst you are an undischarged bankrupt all money you receive over and above the basic amount required to live on will go to the Official Receiver handling your bankruptcy. If you were successful in re-claiming charges from your bank, they themselves would not be able to take the money for themselves to repay any outstanding amount you owe them. As a condition of your bankruptcy you are obliged to declare this money to The Official Receiver who will then divide up the money proportionally between your creditors starting with priority creditors (Usually banks and mortgage cos!) so they may well get it back anyway depending on the particulars of your bankruptcy.

If I'm wrong about any of the above, hopefully someone here will put me right but this is how it was a few years ago.

emijen, How far back do the bank charges you would like to claim from your bank go back to and when will you be discharged from your bankruptcy? My advice would be to wait until you are discharged and then claim. If it's February next year then you've only got 6 months and then any money you receive as a discharged bankrupt is yours

Hope this helps.

Minnie

[gizmo111]

Surely if someome is bankrupt then all their debts have been written off regardless of how they have been made up. Therefore I can not see how they could reclaim bank charges as they have not been paid ie
already written off by OR

If however charges made up a lare proprtion of hte debt before BR then the claimant would have a whole diferent case.

This needs a mod to clarify

[emijen]

thanks for the advice everyone,
i will be discharged in february 2007 so it is only a few months left, was hoping to go for the whole 6 years worth of charges out of principle, my bank was so unhelpful when things got really bad!
Gizmo, i totally understand your view and i have to admit an unaffordable loan and credit cards were my main cause of bankruptcy, unfortunitly i went to the bank for advice rather than an advisor and instead of helping me out of debt they advised a massive loan was my only option, in fact it was so unaffordable i had to promise them that i would reduce my phone bill and cut out my mobile so that i could tick all the right boxes and get the loan, as stupid as it sounds, i should have known better but i had no food in the house and 3 kids to try and feed so i needed a quick fix, biggest mistake of my life!

[emijen]

Oh just thought! OR wrote off loans and cards, but i had no debt with my account so i have paid all my bank charges! didn't have so much as an overdraft just getting £30 charges every other day for being skint! does this make any difference?

[gizmo111]

Originally Posted by emijen

Oh just thought! OR wrote off loans and cards, but i had no debt with my account so i have paid all my bank charges! didn't have so much as an overdraft just getting £30 charges every other day for being skint! does this make any difference?

Seems so but I owuld wait until Feb if I was youy.

[aligwood]

Umm, why don't you just wait till your debt has been written off, THEN make a claim? wouldnt you then get that money as your own, rather than having to give it straight to the bank?

[lyn-marie]

I am sorry to have caused confusion... It is my friend who is having to take the sad road of bankruptcy. |I put this in the first person to try to avoid confusion and seem to have made it worse! Anyway, some of his questions have been answered, I will just relay your replies back to him. Situation is... He has got into such a mess now with credit cards, exceeding overdraft limits, loans and mortgages to the max that there is no way to keep up with repayments and nowhere else to turn. The financial advisor says bankruptcy will result in reducing amount owed for mortgage to bank (for example) can be reduced by £15000. That bank has applied charges of £500 per month for last good few months. So each time they get paid the money goes out before they even start with repayments and living. That is of course excluding interest on everything. My heart breaks for them really. My friend is saying it is a waste of time trying to claim the bank charges as I have been pushing for them to do (thanks to this site) caus anything claimed will go straight back to the bank. Hope this makes some kind of sense; I have confused meee. I am doing this on their behalf because their phoneline has been cut off and therefore no life line - internet! Any advice is welcome thanks

[gizmo111]

Originally Posted by lyn-marie

I am sorry to have caused confusion... It is my friend who is having to take the sad road of bankruptcy. |I put this in the first person to try to avoid confusion and seem to have made it worse! Anyway, some of his questions have been answered, I will just relay your replies back to him. Situation is... He has got into such a mess now with credit cards, exceeding overdraft limits, loans and mortgages to the max that there is no way to keep up with repayments and nowhere else to turn. The financial advisor says bankruptcy will result in reducing amount owed for mortgage to bank (for example) can be reduced by £15000. That bank has applied charges of £500 per month for last good few months. So each time they get paid the money goes out before they even start with repayments and living. That is of course excluding interest on everything. My heart breaks for them really. My friend is saying it is a waste of time trying to claim the bank charges as I have been pushing for them to do (thanks to this site) caus anything claimed will go straight back to the bank. Hope this makes some kind of sense; I have confused meee. I am doing this on their behalf because their phoneline has been cut off and therefore no life line - internet! Any advice is welcome thanks

I still don't understand - if you are bankrupt then financial advisors have nothing to do with the court, it is all amnaged by the OFFICIAL RECEIVER. All assets are taken to pay creditors. If assets exceed debts then the person is not unsolvent. there is no such thing as part bankruptcy. If the house is in joint names then the benefiacial interest will be offered to the partner usually at the reduced rate that would be acheived in a quick sale. I hope your friend is not paying this so called advisor for his strange advice?

I would suggest that your friend adds up what the banks owe him, what he owes now and what he will owe after they have paid. Changes bank accounts as a priority so his essential outgoings are paid and he has mone yto budget, in the meantime offers creditors pro rata reduced payments and then re addressess his situation in six monthsa time. If you feel uncomfortable putting details on here then feel free to PM me.