I ended up in bankruptcy due to a JV business partner taking me for a very expensive ride. Close to £1 million. That said I've been discharged since July lasy year and back in international business. This is where the issue with the default came up. I now have 4 international companies and had to open a new bank account for one of them. I told the bank I was a discharged bankrupt which didnt concern them. What concerned them was a default entered one week before my discharge. This was the reason for the enquiry as there seem to be differnt information about this on the forums. Some say you cant be issued with a defaul after you were made bankrupt as legally you no longer have the debt so how can you be issued with a default. Others say you can. The odd thing is could one of these companies hold the old debt on their records for a number of years and then enter a default that could undermine the work you have done rebuilding your financial reputation. Maybe not in the personal world but more so in the business community that do look at things in a slightly differnt way. If they can legally do this then I'll just have to deal with it. If they cant then I will ask for it to be removed.
I should add that although the Default letter may be sent after the bankruptcy order the actual date of default should be the date of bankruptcy or before, and it should show as settled or satisfied either on or before your discharge date
I thought this was the case. I spoke with he bank who issued the default and they were catagoric that they could do this and the would not be changing the details with the credit reference agency. They actually issued 3 defaults on differnet accounts. I will use the letters kindly given in the link and the advise and see where I get. I actually spoke to the OR office today and even they said the bank were within their rights to issue the defaults only 1 week before my discharge date.
I think if these companies are refusing to update the credit files and still marking defaults, they can be reported to the Information Commissioner, have a read of this topic
default notice after the date of your bankruptcy?
Posted - 19 March 2010 : 19:32:01
