Bankruptcy and claiming charges: Revisited

[Nattie]

There was discussion a few months ago with regards to this and I happened to contact the Official Receiver. They stated that charges could not be claimed back when made bankrupt. As there are a wealth of new posters who have lots of knowledge on this area, i would like your opinions. I have to admit that I still do not know the answer. Its either a straight NO. A MAYBE or YES under certain circumstances, ie discharged bankrupt incurring charges after date of discharge.

Please enlighten me.

[tomterm8]

Re: Bankruptcy and claiming charges: Revisited

Charges can be claimed back, but you would need to buy the right of action from your OR / trustee, since like any other choose in action it vests in the bankruptcy estate. ORs would not, themselves, engage in such an action.

EDIT: have a look http://www.insolvency.gov.uk/freedom...rt4/part_4.htm

[Nattie]

Re: Bankruptcy and claiming charges: Revisited

Can you explain, "buy the right of action". Are we talking a literal buy, ie money changes hands?

[tomterm8]

Re: Bankruptcy and claiming charges: Revisited

Not necessarily, there are many terms under which a right of action can be bought. in very many cases, a right of action might be bought for a fixed sum, or for some percentage consideration of any court award... (i.e. an assignment might, as consideration, be for 25% of the realised value, but you guarantee to pay the costs of the legal action).

it is, ultimatly, a matter for negotiation between the OR and the prospective purchaser.

The OR is NOT obliged to sell any right of action, however.