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pix1
Average Member
689 Posts |
 Posted - 15 July 2008 : 10:32:26
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Good morning all,
My wife went BR in May 08 and declared all the debts she had on the BR petition statement of affairs. However, since then an amount she owed - originally £4000 - with an unregistered money lender has come back to haunt her. The woman who lent the money (who runs a 'business' where she goes round to hospital wards lending money to nurses who need a few extra pennies) is now chasing my wife for £4000 (maybe she says also that there is 'interest' accruing on it). The 'loan' was originally taken out several years ago but - and here is an important point - my wife made a payment within the past year or two of £500 or £800 (not sure the exact amount) as full and final settlement of the 'loan'.
My observations are
1) My wife had nothing in writing about this 'loan', however, she says she did receive money.
2) The loan was made with no consideration of my wife's financial circumstances, i.e. whether or not she would be able to repay it.
3) I never knew about it until much later (!).
4) The money lender is not registered with the FSA or anyone else.
5) An amount was paid in full and final settlement (though i don't think anything was in writing that it was FFS).
6) Because it was considered by my wife to be a settled debt she did not declare it on her BR form.
With the above in mind, would the 'debt' (if it can even be proved as such) be included in the BR if my wife does not declare it to the OR? Related to this, if my wife does go ahead and declare it as a possible (?) debt to the OR would it be included in the BR? Finally, would the OR take a dim view of the debt not being included since there is (probably) no proof of my wife making a payment in FFS and the OR might wonder why it was not included?
I personally think it should be declared to the OR as some kind of a DISPUTED debt for which there is no proof and that it was FFS'd by my wife (for which, probably, there is no proof)so that the OR is more fully in the picture. If my wife ignores it because it is not a legal loan I assume the money lender concerned would have no legal recourse as the 'loan' was prior to the BR date and would be covered by it REGARDLESS of whether it surfaced at the time the OR was dealing with it.
I think, to be fair on the money lender (even though she has acted irresponsibly in going around lending money to people without checking if they can repay) it would be better to declare it as a possible debt to the OR. This would mean the money lender would become another creditor along with the others. Of course, my guess is that this money lender probably would not want to m,ake a big issue out of it and would disappear out of guilt and embarrassment at being an unregistered loan shark.
One thing that worries me is whether the OR would be more likely to give my wife a BRO if he thought my wife borrowed irresponsibly from a loan shark in the first place.
Sorry this is a long post. I would be grateful for assistance on this. |
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pix1
Average Member
689 Posts |
Posted - 15 July 2008 : 10:34:51
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P.S.
Let me add:
If my wife gets this out into the open the money lender wouold then be less likely to keep hassling her, potentially for years, about this alleged debt. After all, the whole point of my wife's BR is to get a fresh start financially - as is her civil right. |
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Suzanne
Average Member
United Kingdom
869 Posts |
Posted - 15 July 2008 : 11:13:31
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Hi Pix1
I would suggest that your wife writes to the OR and lets them know the full situation. They will then write to the lender and invite them to make a claim. She has done nothing wrong as far as I can see, so the best policy would be to be honest.
Suzanne Stocker
Bankruptcy Manager
Jones Giles Ltd
www.jonesgiles.co.uk
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melanie_giles
Senior Member
1191 Posts |
Posted - 15 July 2008 : 13:13:04
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The debt is definately one which is captured in the bankruptcy estate, and therefore the OR will deal with this from now on. All your wife has done has been to forget about a debt - and the OR will not give her a black mark for this.
As your wife is discharged from this debt by the nature of her bankrutpcy, the moneylender has no right to pursue her for this money in the future.
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com |
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BR - Loan Shark 'Debts'
