Over a month ago I wrote to all my creditors explaining that my husband has gone bankrupt and he was looking for work and that we therefore had very little disposible income. I explained we have no equity on the house and that I was thinking of going down the bankruptcy road too.However I offered a full and final settlement of 30% from an endowment I have cashed in. I have had no replies from anyone. I sent all the letters by registered post so I know they all reached their destination. Two companies have been phoning me butI've had nothing in writing.I haven't answered the phone to these companies as I said in the letter I wanted the reply in writing. What should my next step be? Should I resend the letters reiterating my position? Would much rather pay full and final settlements than go through bankruptcy. if I do decide to go bankrupt I will have to hand the money from the endowment over to the OR won't I? If I do decide to go bankrupt what's to stop me spending some of the money first? For example we could really do with a new three piece suite and new hall and stairs carpet!
"Should I resend the letters reiterating my position?"
Yes, and stress that you need a written reply by a certain date (i.e. 31st December or even 31st Jan to give them time) and if you haven't received a response by then you will have no option but to declare BR.
"If I do decide to go bankrupt I will have to hand the money from the endowment over to the OR won't I?"
Yes, the OR would want this to pay to your creditors.
"If I do decide to go bankrupt what's to stop me spending some of the money first?"
If you spend the money when you know that you are going to declare BR then the OR could implement a BRO (Bankruptcy Restrictions Order). This would extend the BR restrictions (not being able to be a director of a company, needing to inform people you are BR if you want to borrow more than £500, etc.) for up to 16 years.
No reply from creditors
Posted - 22 November 2009 : 18:49:35
