Introduction
Are you struggling with creditor harassment after declaring bankruptcy? This guide will help you understand your rights and what steps to take if creditors continue to contact you. Learn how bankruptcy protects you from most debts and what to do if you still receive calls or letters. If you need support navigating these complex issues, Contend’s highly trained AI legal experts are here to assist you in resolving your legal problems. With Contend, you can access the easiest legal help in the UK.
Going bankrupt can be a tough experience, but one of the benefits is that most of your creditors should stop bothering you for payments. However, there are some important exceptions to this rule. If you find yourself still receiving calls or letters from creditors after declaring bankruptcy, here’s what you need to know.
What Happens When You Go Bankrupt
When you are declared bankrupt, the law protects you from most creditors. This means:
- They cannot attempt to collect money from you, which includes sending you letters or sending debt collectors to your home. They can, however, send you statements showing your account balance.
- They cannot initiate new court actions against you unless they receive special permission from the court.
What to Do If Creditors Contact You
If a creditor reaches out to you for payment, first check if the debt is included in your bankruptcy.
If the Debt is Covered by Bankruptcy:
- Do not pay the creditor anything.
- Inform the creditor that you are bankrupt.
- Contact your official receiver or bankruptcy trustee to report that the creditor is still trying to collect the debt.
If you forgot to inform the official receiver about a debt, make sure to address that as well.
If the Debt is Not Covered by Bankruptcy:
In this case, you will need to handle the situation yourself. This means negotiating payment plans or responding to their requests for payment.
Types of Debts Creditors Can Still Chase
While many debts are wiped clean by bankruptcy, some types are still enforceable. These include:
- Secured debts (like mortgages)
- Court fines from magistrates
- Child support or maintenance arrears
- Social fund loans
- Student loans
- Court-ordered payments related to criminal activities
- Rent arrears (your landlord cannot force you to pay but may evict you if you don’t)
If you owe any of these debts, you may want to reach out to the creditor to discuss payment arrangements.
Special Cases: Tax and Council Tax Arrears
If you owe money to your local council or HM Revenue and Customs (HMRC), they may employ bailiffs to recover the debt. Bailiffs have the authority to take and sell your belongings. However, they cannot deduct money from your wages or set up payment plans with you.
What If You Have EU Creditors?
If you owe money to creditors in the European Union (EU), those debts might not be covered by your bankruptcy. This means they can continue to contact you for payment and may even take you to court in the EU. If you live in the UK but have a mortgage with an EU lender, they could also pursue legal action against you in the EU.
It’s advisable to seek legal advice if you find yourself in this situation. For assistance, consider trying Contend’s legal expert chat. Contend’s highly trained AI legal experts will work with you to provide guidance and help you understand and resolve your legal problems.
What to Do If Your Bankruptcy Trustee Isn’t Responding
Sometimes, creditors may still reach out to you because your bankruptcy trustee or official receiver isn’t responding to their inquiries. If this happens, you have the right to file a complaint.
- If your trustee is the official receiver, follow the complaints procedure outlined by the Insolvency Service.
- If your trustee is an insolvency practitioner, you should complain to their professional body through the Insolvency Service Complaints Gateway.
Next Steps
If you’re feeling overwhelmed by creditor contacts after bankruptcy, it’s essential to know your rights and options. You can learn more about how to file a complaint against your official receiver or insolvency practitioner by visiting the Insolvency Service.
If you need assistance with your complaint or have questions about your situation, consider reaching out to Contend’s legal expert chat for support. Remember, you are not alone, and help is available. Contend is the Easiest Legal Help in the UK.
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