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Max Lowry
Max Lowry, Advocate
Category: Bankruptcy Law
Satisfied Customers: 80
Experience:  LLB, 10 years post qualification experience
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I was made bankrupt earlier in the year and have just had a

Customer Question

I was made bankrupt earlier in the year and have just had a letter from my bank who I use to have my business banking with, They have made an amazing offer in regards ***** ***** base rate swap I took out with them, if i accept will the bank do a check on me to see if i am bakrupt and then contact the reciever and pay the money to them direct or do I refuse the offer and continue to decline the offer until my bankruptcy is discharged.
Submitted: 2 years ago.
Category: Bankruptcy Law
Expert:  Alex J. replied 2 years ago.
Hi,

Thank you for your question and welcome.

My name is AJ and I will assist you.

Did you take out the rate swap before you went bankrupt?

Kind regards

AJ
Customer: replied 2 years ago.

yes it was taken out in 2006

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

I am afraid there is not very much you can do.

This forms part of your estate in bankruptcy and if the bank proposing buying the rate swap then you will have to contact the trustee in bankruptcy and let him know.

If you do not take the offer now and wait until after you have been discharged, potentially you would have to wait 6 years until you would be free clear of any claim from a trustee that this money should have otherwise been paid into your estate.

How much money are we talking about and how long till you are discharged?

Kind regards

AJ
Customer: replied 2 years ago.

216,000 Feb 2015


are you aware weather the bank would do any checks on me to see if i am bankrupt before they made payment

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

In all likelihood, someone in the bank would have already been informed because the trustee would have written to most banks notifying them of your bankruptcy. Whether the bank does a credit check of you or not is unlikely given that you are already a customer, but it depends on the banks internal procedures. Did you not already disclose this rate swap to the trustee?

Kind regards

AJ

Customer: replied 2 years ago.

no, because I only got the from the bank today

Customer: replied 2 years ago.

no, because I only got the letter from the bank today and I am no longer a customer with that bank.

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

Is the rate swap in the name of a limited company?

Kind regards

AJ
Customer: replied 2 years ago.

no, in my own name, i was hoping for early discharge as my debt is around 1.7 million and I have no assests, the majority is owed to the bank but not the one who have just made me the offer.

Expert:  Alex J. replied 2 years ago.
Thank you.

My apologies, I think I have misunderstood the situation.

If the rate swap is in your name - how are you no longer a customer of the bank?

Kind regards

AJ
Customer: replied 2 years ago.

yes it is in my name, I am no longer with the due to moving my commecial mortgage to another bank who I owe most of the money to, however it was not the bank that have made me bankrupt it is a laundry company for the amount of £16k and I then decided to put evrything into the bankruptcy.

Expert:  Alex J. replied 2 years ago.
Hi,

Thank you.

The point is that you have to assume that the trustee has contacted the bank and told them of your bankruptcy.

If you are worried about the bank's policies, just ask them if they will do a credit check before hand.

What do you intend to do with the £216k if you received it? Pay off creditors?

Kind regards

AJ

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