Hello, My grandson's father ( my daughter died 3 years ago ) borrowed £ 6000 from me 5 years ago .. he has been repaying as slow as possible , missing payments, etc... then stopping when my daughter died ( using it as excuse ) The debt has gone down to now £ 3000 and he was repaying £ 150 per month until May last. He is now telling me that he has been made bankrupt and that the £3000 he owes has been written off by the bankruptcy . Is there anything i can do to get my money back ,,,,??? if he is right shouldn't i get all this in writing ?? Many thanks XXXXX
System of Law: England-and-Wales
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Hi, if the individual has been declared Bankrupt, unfortunately, the debt would be written off and you would be unable to make a successful claim through the courts.
However, it is not that straight-forward.
Within 12 weeks of the bankruptcy being declared by the court, the Official Receiver will contact all known creditors. They will either confirm that they will act as the trustee or arrange a meeting to appoint one.
If you are owed money by a bankrupt or a company in liquidation, you have to make a formal claim to recover your money.
You will have to write to the Official Receiver if you have not been contacted. You should do this before a decision is reached about how the debts are being paid or you may lose the right to make a claim.
To make a claim you should complete a proof of debt form. If the official receiver is holding a meeting of creditors to appoint an insolvency practitioner you should be automatically sent a form to complete and return by a specified date. If you do not return the form by the specified date your claim will still be accepted but you will not be able to vote to appoint an Insolvency Practitioner.
There is a strict order of priority when it comes to paying out any money. The order is as follows:
The trustee can accept all, part or none of your claim. They must explain their reasons in writing and you can apply to the court for their decision to be reversed or varied. I would suggest that you obtain legal advice if you do this.
The amount you will be repaid can depend on:
If the trustee/liquidator can’t repay the debts in full they will pay out as much as they can. This type of payment is called a ‘dividend’ and the amount you receive will be in proportion to the value of each claim being made.
Therefore, if the individual does not have very many assets and what little assets he does have, once sold, are not enough to pay his other secured debts, you will receive nothing. However, this should not put you off registering your claim.
If you wish to seek further clarification, please ask. Many thanks,
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UK Qualifed Solicitor-Advocate
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