Help please. I've been made bankrupt for money I don't owe.

[DoctorWhat]

A few days before Christmas I received a huge pack from the Insolvency Service informing me that I had been made bankrupt upon the petition of 1st Credit. The hearing was apparently a few days beforehand, though I knew nothing about it at all and had not received any petition or notification of date of court hearing and so obviously was not at court when the case was heard. The Insolvency Service have since provided me with a copy of the petition in which 1st Credit claim that I owe them in excess of £8000.

 

History of the debt is that I took out a personal loan in 2002 on which I defaulted with the repayments. The debt (about £6900 at the time) was assigned to 1st Credit who used a doorstep collection agent to collect monthly payments which I agreed with him and paid every month without fail for over three years (thus reducing the debt quite significantly). Out of the blue a couple of years ago, 1st Credit instructed the collection agent to cease collections and then started corresponding with me direct asking for the entire amount – failing to take account or even acknowledge the fact that I had been making payments for over three years. I contacted them repeatedly – usually in response to their letters - to explain that their figures were wrong and sent them copies of proof of the payments I had made to their collection agent (a payment card with each monthly transaction recorded and signed by the agent) – all of which were seemingly ignored.

 

Do I have grounds to have this bankruptcy annulled? I am incredibly aggrieved that I had no notification of the hearing or copy of the petition before the event and I am relying on the fact that the sum quoted in the petition is very wrong indeed and that their claim (also in the petition) that I have not made any payments against the account is quite demonstrably wrong – luckily I still have the payment card.

 

One possible fly in the ointment is that 1st Credit have a CCJ against me for the sum of £8000+. Foolishly, I didn’t challenge this at the time (even though I had the evidence to so so) being so exasperated with them. Would this make a difference to any application for annulment?

 

Sorry if all this sounds like a garbled mess, but my head is in a spin. I’ve had a terrible Christmas thinking about all this and would really appreciate any and all advice.

Many thanks.

[ims21]

Hi

 

I've flagged this for the team's attention but please bear with us because being the weekend and New Year it might be a bit quiet over the weekend.

 

ims

[BRIGADIER2JCS]

Hi Welcome,

The best way forward over this weekend

and the bank hollidays is to get ALL your

documents and information into chronoligical

order, and when the court reopens get all the

information on the petition and where the papers

were sent it is alleged in the past that documents

have been deliberately sent to previous addresses

and of course left unanswered and judgements

awarded in default.

You must get all the information so it will be easier

to advise.

As ims21 says it will be pretty quiet here this evening

and tomorrow, please don't worry there is excellent

help here.

Brig.

[rebel11]

Hi Doc

 

It might also be an idea to send 1st Credit a SAR request, get as much data from them as possible. They have 40 days to respond. Templates are in the library, I'm sure the guys can advise about any specific docs to seek. If they don't respond,

then you can complain to the ICO. 1st Credit are well known to the OFT. Were you mis-sold PPI on the loan?

 

http://www.financial-ombudsman.org.uk/publications/factsheets/payment-protection-insurance.pdf

[DoctorWhat]

Thank you all so much for your replies.

 

Of course I will pull all documentation together - such that I still possess, but I'm more relying on the fact that the figure cited in the bankruptcy petition is almost double what I actually owe, rather than lack of receipt of documentation (although I maintain that I did not receive the petition and was not notified of the court hearing date).

 

 

1st Credit are well known to the OFT. Were you mis-sold PPI on the loan?

The original personal loan was with Direct Line and was later passed to 1st Credit when I defaulted.

[dx100uk]

its quite common for the door steppers to pocket the money too.

 

and that never goes off the debt.

 

we need the full history as i suspect the dates will be important.

 

you have the payment card [great well done]

 

went you defaulted how long after that was the doorstepper started

many years?

 

dx

[gezwee]

Do you have details of the I.P?

 

Gez

[citizenB]

If you didnt receive either the BR notice (Would that be a statutory demand? ) or court date, then it is possible you could get this set aside.

 

It is obvious that 1st Credit knew your address as they had been communicating with you.

 

You say that 1st Credit already have a CCJ against you. Was that for the same debt and had you been repaying that in accordance with the court order. Did you attend court for this CCJ ?

[DoctorWhat]

Do you have details of the I.P?

Sorry, I.P.???

 

You say that 1st Credit already have a CCJ against you. Was that for the same debt and had you been repaying that in accordance with the court order. Did you attend court for this CCJ ?

Yes - the same debt. But this is the buggeration factor. I had been paying the debt off monthly through their doorstep collector before they got the CCJ. The amount claimed on the CCJ did not take account of those payments that I had made and was for the full amount that was assigned to them at the outset (i.e. before their doorstep collector ever called on me) plus interest and costs.

 

Stupidly, I didn't deal with this CCJ business at the time. I didn't attend court which was in Northampton - about 250 miles from where I live!

[citizenB]

You say you didnt deal with the CCJ because the court was in Northampton !

 

The issuing court only was Northampton - Bulk Centre.

 

Had you dealt with it at the time, ie acknowledged, defended.. then the papers would have been transferred to your local court for a hearing. alternatively, when it came to allocation questionairre time, then you woluld have been able to contest the jurisdiction.

 

Almost certainly you would have been able to point out that their claim was incorrect if you had been in a payment arrangement !!

[DoctorWhat]

its quite common for the door steppers to pocket the money too.

 

and that never goes off the debt.

To be fair, he was a pretty affable chap and I still have his contact details and in fact see him around as he lives quite near me.

 

we need the full history as i suspect the dates will be important.

 

This is something I prepared earlier!

 

 

• In late 2001 or early 2002 I entered into a personal loan agreement with Direct Line. As I recall, the monthly repayments on this loan were in the region of £190.00 per month.
  
• In July 2002 I was made redundant by my then employer following their insolvency. Following this I entered a brief and unsuccessful period of self-employment, prior to obtaining my present employment in June 2003. During that period I defaulted on my loan repayments and Direct Line passed the debt to a third party collection agency.
  
• On a date which I do not recall, but which I believe to be during 2004 I was visited by a collection agent - Mr XXXXX - who identified himself as acting for 1st Credit Ltd on behalf of Direct Line. I offered Mr XXXXX repayments in the sum of £50.00 per month to which he agreed.
  
• At the conclusion of that meeting, Mr XXXXX presented me with a payment card clearly identified as originating from 1st Credit Ltd and detailing the agreed payment plan and an opening balance of £6929.64, being the sum owed at the time. It was my understanding that in concluding this repayment plan the matter was settled to the satisfaction of both parties.
  
• Mr XXXXX called at my premises each month for the following 39 months and collected from me payments in accordance with the agreed plan. On each occasion, the payment card was marked by Mr XXXXX with the amount paid and the reducing balance and was signed by Mr XXXXX.
  
• On a date which I do not recall, but which I believe to be during 2008 Mr XXXXX called to advise me that he had been instructed to cease collection any further amounts in respect of the debt. At this time the balance outstanding on the original debt had reduced to £4989.64.
  
• On a date which I do not recall, but which I believe to be during 2008 and which I recall was shortly after Mr XXXXX’s visit to me described in para. 6 (above) I received a letter from - I believe – Connaught Collections demanding payment in the sum of around £8300, allegedly being the full amount still outstanding to Direct Line/1st Credit Ltd. I telephoned the number advised on the letter and explained that the amount demanded was wildly incorrect, that I had been making regular monthly payments against this debt for over three years and that, in fact, the outstanding debt was less than £5000.00. I also asked for an explanation as to why – after the previous repayment arrangement functioning satisfactorily for many years – it had suddenly and inexplicably been stopped. The person I spoke to was not aware of either the previous arrangement or previous payments, but advised me to send a copy of the marked up payment card to their office as proof of my assertion. This I duly did.
  
• I heard nothing in reply to my correspondence. On various occasions (not exceeding 4-5) between that time and now I received letters from both Connaught Collections and 1st Credit Ltd similar to that described in para. 8 (above). On two further occasions, I contacted the companies and made the same representations as those described in para. 8 (above) and sent further copies of the marked up payment card.
  
• My next communication on this matter was received by me on 17th December 2011, that being from the Insolvency Service which included a copy of my bankruptcy order on 12th December. I can categorically state that I did not receive any notification of the court hearing of 12th December, nor did I receive a copy of the claimant’s petition. Had I been aware of the hearing, I would have attended the court on the required date and presented the facts outlined above.
  
• It is suggested that a statutory notice was served at an earlier date. I can state that no such notice was served to me in person. I am unable to confirm or deny that the notice was delivered to my house by post, only that I had no knowledge or sight of it.
  
• Since receiving the correspondence from the Insolvency Service, I have made further enquiries and have been advised that the claimant’s petition was in the sum of £8622.64. I am unable to ascertain how this sum is arrived at, but it is clear that payments made by me have not been taken into consideration, hence I am not ‘justly and truly indebted’ to claimant in this sum.
  

[DoctorWhat]

You say you didnt deal with the CCJ because the court was in Northampton !

 

The issuing court only was Northampton - Bulk Centre.

 

Had you dealt with it at the time, ie acknowledged, defended.. then the papers would have been transferred to your local court for a hearing. alternatively, when it came to allocation questionairre time, then you woluld have been able to contest the jurisdiction.

 

Almost certainly you would have been able to point out that their claim was incorrect if you had been in a payment arrangement !!

Thanks for the reply citizenB.

 

How can I deal with this now, though - particularly in the context of the bankruptcy order which was granted based on the petition for the amount in that CCJ?

[citizenB]

The above would have pretty much been a full defence !!

[citizenB]

Thanks for the reply citizenB.

 

How can I deal with this now, though - particularly in the context of the bankruptcy order which was granted based on the petition for the amount in that CCJ?

 

 

Just waiting on some help for you.. I guess quite a few people would have celebrated the New Year and might not surface until tomorrow !!

[DoctorWhat]

Just waiting on some help for you.. I guess quite a few people would have celebrated the New Year and might not surface until tomorrow !!

He he. Thanks for your input.

[citizenB]

[Surfer01]

Send a SAR request as soon as possible as this should then show all dates and payments etc. Send the request registered mail for a signature.

[gezwee]

Hi DW

 

I.P...... Insolvency practitioner

 

Is the trustee an officer of the court [official receiver] or has it been farmed out to an I.P? If its an I.P thats taken up the appointment they may be able to offer you some guidance......

 

Gez

[DoctorWhat]

Hi DW

 

I.P...... Insolvency practitioner

 

Is the trustee an officer of the court [official receiver] or has it been farmed out to an I.P? If its an I.P thats taken up the appointment they may be able to offer you some guidance......

 

Gez

Hi. No IP, just the Official Receiver.

[citizenB]

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187385

 

There is some information regarding annulling/cancelling bankruptcy on the link above.

 

I think you need to act swiftly, especially in order to stop any advertising of the bankruptcy.

[DoctorWhat]

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/Bankruptcy/DG_187385

 

There is some information regarding annulling/cancelling bankruptcy on the link above.

Thanks for the link. Following the advice on that page ("Steps to take if the bankruptcy order should never have been made") takes me to Form 7.1A on this site - http://www.bis.gov.uk/insolvency/about-us/forms/england-and-wales - which seems to relate to company insolvency. Is this the right form, do you know?

 

Also, when I apply to have the bankruptcy order annulled - probably using the statements in my post upthread - how will the fact that a CCJ is in force (albeit for an amount which I can show is wrong) affect my case for annulment?

 

I think you need to act swiftly, especially in order to stop any advertising of the bankruptcy.

I think I've missed the boat on that one, I'm afraid, since I've had a ton of unsolicited letters from companies offering their services to me.

[citizenB]

TBH, from what you have said previously.. the CCJ could have been either defended initially or set aside if it was awarded in default because you hadnt known about it.

 

You were paying as required.. it was the claimant who stopped collecting for no reason.

[DoctorWhat]

TBH, from what you have said previously.. the CCJ could have been either defended initially or set aside if it was awarded in default because you hadnt known about it.

 

You were paying as required.. it was the claimant who stopped collecting for no reason.

Agreed. Any tips as to how I can resolve this problem now, though? Will I need to apply to have this set aside before I can apply for annulment, or would the court consider an annulment without a set aside of the CCJ. Obviously I would apply to set it aside subsequently. Just need to try to get this bankruptcy annulled as quickly as possible without any delays.

[42man]

I'm sorry I didn't see this a little earlier, I went through exactly what you have been through (with the same company !!)......you need to move as quickly as possible.....first steps, you need to notify the Official receiver that you intend to annul the bankruptcy, you will need to do this before they appoint a trustee (and they will want you to come in and be interviewed and hand in your cheque books, details of pensions, premium bonds etc and to find out if you have any major assets) Secondly go to the court and get EVERYTHING from the files, there should be an affadavit, statutory demand (did you receive one at any point ?) and an affadavit from a process server showing how they had attempted personal service (and failed by the sounds of things).....A SAR to the original creditor AND 1st Credit is essential as is a CCA request to both too. (you can find the links in my signature).....

 

You will need to annul the petition first, and then attend the bankruptcy hearing (it goes back to petition stage once you have annulled) under the 'slip' rule.

 

Please keep us posted.....and do let us know what is in the court files....(you will be charged a small copying fee)

 

You are looking for the petition, affadavit/witness statement stating how they had attempted service, statutory demand, any adjournments (you should have been notified of any adjournment too) If there was an adjournment then there should be an affadavit/witness statement of continued service......

[Condemned]

I'm sorry I didn't see this a little earlier, I went through exactly what you have been through (with the same company !!)......you need to move as quickly as possible.....first steps, you need to notify the Official receiver that you intend to annul the bankruptcy, you will need to do this before they appoint a trustee (and they will want you to come in and be interviewed and hand in your cheque books, details of pensions, premium bonds etc and to find out if you have any major assets) Secondly go to the court and get EVERYTHING from the files, there should be an affadavit, statutory demand (did you receive one at any point ?) and an affadavit from a process server showing how they had attempted personal service (and failed by the sounds of things).....A SAR to the original creditor AND 1st Credit is essential as is a CCA request to both too. (you can find the links in my signature).....

 

You will need to annul the petition first, and then attend the bankruptcy hearing (it goes back to petition stage once you have annulled) under the 'slip' rule.

 

Please keep us posted.....and do let us know what is in the court files....(you will be charged a small copying fee)

 

You are looking for the petition, affadavit/witness statement stating how they had attempted service, statutory demand, any adjournments (you should have been notified of any adjournment too) If there was an adjournment then there should be an affadavit/witness statement of continued service......

 

hi, i was reading this post hoping to get to the end of the story but it looks as though the guy never came back.

I have a similar situation which I hope you can help me with.

 

I was really ill in 2010 with a medical condition which i was hospitalized for almost 3 months (on and off), 3 months prior to that I was clinically depressed and seeing a Psychiatrist and Councillor once or twice a week. All of this time I wasn't working and earning nothing and totally reliant only on FTC. I had a vet bill which I was struggling to pay off before all of this but managed to pay each month but when I fell ill with my depression I missed 1 (one) payment. Within 2 weeks the practice had logged a CCJ but I was in no state to respond or fight my corner, the only reason I would leave my bedroom was to go to my counselling sessions and then I would have someone drive me as I wasnt fit enough to drive.

 

Anyway...

 

Six months later still depressed and four stone lighter, I started to try and rebuild my heath but everything else was still being hidden from me by my partner as my mental health was still in a very poor state, although I decided I no longer needed to see my Psychiatrist I continued (and still continue) to take the anti depressants. Through 2011 I wasn't working still and had an added pressure of a family emergency which I cant speak about here. All of my bills snowballed and the vet practice made Bankruptcy Petition to the court in Nov 2011 with a hearing in Jan 2012. Only now am I able to look at all of the paperwork but I am struggling to understand it. It looks as though the hearing was held off for some reason as the my paperwork doesn't flow, i think there is a letter or two missing but it looks as though the Bankruptcy was filed in May 2012.

 

I do remember my partner contacted someone to tell them I was too ill to attend the meeting with an official of the court (I think) and there was a couple of further emails exchanged between them, but never to me. I was told the last email from the official said that "he was leaving and the case would be handed over to his replacement". I still haven't had any correspondence with them 'directly' to this date, not letters, no emails, nothing! but now I am trying to sort this mess out.

 

I have found the Bankruptcy entry online and it has been 'extended indefinitely' but I have a problem with this;

1st. I have noticed the CCJ is wrong, it has the wrong amount that I owe

2nd. the CCJ dates on the plaintiff's claim are actually later than the date on the court papers: They state that I took their services on 1st Oct 2010 and the application date to the court is June 2010 and yet they try to claim interest from 2009

3rd. even if the CCJ stands with the incorrect amounts and date, the Bankruptcy officials have never contacted me or chased me, I have had to carry out my own research and the only knowledge I have on 'what to do next' has been down to my seeking advice (which is why I am here) and now they have extended my Bankruptcy with only 5 months to go when it should have been extended no later than 6 months before the end.

 

So my question is.. "what do I do?" I really hope you can help.