Bankruptcy - What's In It For The Creditor?

[eugenespeed]

Hi.

So, long story short, after being quite a bit in debt for several reasons, I went bankrupt in December last year. Since then, life has been great and hassle free.

There is one debt still ongoing though. I have not declared it. The reason being, I owe a friend £700, but I owe this money to a friend because she helped me out using her business. If that makes sense. The debt final amount was from a few months before I declared bankruptcy.

She's in no hurry for the money back, but because she helped me out so much, I feel guilty as hell about it. There is no way in the near future I will have that amount of money to pay her back.

So, my question is, if I went official about it and declared this debt to her business, would she get anything out of it? I have no assets whatsoever (I may have a couple of pensions somewhere and perhaps some PPI owing, but am not rich by any stretch!).

Thanks.

[Loopyloo]

Re: Bankruptcy - What's In It For The Debtor?

Not sure you can just 'add' this debt to your bankruptcy, if that's what you mean. As you've already been declared bankrupt, you have to declare all debts to be included at the time of going through the bankruptcy, cannot add at a later date.

[eugenespeed]

Re: Bankruptcy - What's In It For The Debtor?

Not sure you can just 'add' this debt to your bankruptcy, if that's what you mean. As you've already been declared bankrupt, you have to declare all debts to be included at the time of going through the bankruptcy, cannot add at a later date.

Thanks Loopy for your reply.

For some reason I was under the impression that you could "add" debts to BR, as long as they were from before when you declared.

If I'm wrong, that ah! Nadgers!

I'm lucky as she is a friend, so I've got an amicable deal going with her. If I needed to resolve this debt officially, what would be the best option?

[SXGuy]

Re: Bankruptcy - What's In It For The Creditor?

You can add any debts you become "aware" of "after" BR, if the debt was incurred, "before" you were made BR

So yes you can add it.

Your friend, if its a business debt, will be able to write it off as a bad debt in her accounts, thus reducing her tax liability.

[IF]

Re: Bankruptcy - What's In It For The Creditor?

(Edit: Oops, I meant Creditor in the title!)

I've changed the title for you.

Well you can include all debts except those mentioned below. If you include the debt you owe your friend, would you not lose their friendship?


Will any debts be excluded from my bankruptcy?

Although your liability for most debts will be written off once you are discharged, there are exceptions to this. Even after discharge you will still be personally liable for:

• magistrates’ court fines;
• student loans;
• arrears of maintenance or maintenance payments ordered by a court;
• Child Support Agency arrears;
• debts you built up through fraud; and
• debts you owe as a result of a personal injury claim against you.

[eugenespeed]

Re: Bankruptcy - What's In It For The Creditor?

My main problem is, I don't want to lose their friendship, so I would really only be willing to "add" their debt to my BR if there was any advantage for them.

If not, I'd just let it go for the next couple of years and then pay them back when I can.

[IF]

Re: Bankruptcy - What's In It For The Creditor?

My main problem is, I don't want to lose their friendship, so I would really only be willing to "add" their debt to my BR if there was any advantage for them.

If not, I'd just let it go for the next couple of years and then pay them back when I can.

SXGuy says they could right it off

Your friend, if its a business debt, will be able to write it off as a bad debt in her accounts, thus reducing her tax liability.

Have a word with your friend and see what they say? Although I haven't said that......if you know what I mean

[SXGuy]

Re: Bankruptcy - What's In It For The Creditor?

I would also ask your friend, to have a "chat" with her accountant. He/She will know if its worth it or not.

[eugenespeed]

Re: Bankruptcy - What's In It For The Creditor?

Just realised, I forgot to tell you I was discharged in December.

[cymruambyth]

Re: Bankruptcy - What's In It For The Creditor?

That's good, did you solve the money owed to your friend?

[Riz]

Re: Bankruptcy - What's In It For The Creditor?

Just realised, I forgot to tell you I was discharged in December.

Congrats on reaching that. It's not easy.

[eugenespeed]

Re: Bankruptcy - What's In It For The Creditor?

Thanks you two.

I've paid most of it back in cash. She was very patient and I've paid it when I could. I'm still owing, but she's not chasing.

[cymruambyth]

Re: Bankruptcy - What's In It For The Creditor?

That must be a lovely feeling and you lucky to have such a good friend.

[eugenespeed]

Re: Bankruptcy - What's In It For The Creditor?

That must be a lovely feeling and you lucky to have such a good friend.

I feel more morally bound to pay her as she put me up when I was pretty much homeless.

I've paid just over half of it by now.