Quizzes & Puzzles10 mins ago
RE:bankruptcy
If a store has given a bankrupt credit. Then later the bankrupt again goes into debt. Can the bankrupt claim it was the stores fault?
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no - i think it is actually an offence to not declare you are bankrupt when applying for credit during the period of insolvency. Could be seen as fraud - why on earth would someone want to get into debt again when already going through the mill for the same thing? makes no sense and is bloomin' irresponsible if you ask me
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It is an offence to get credit of more than �500 while bankrupt without letting the potential creditor know about the bankruptcy so, if this is what happened, it is clearly the bankrupt's fault.
Was the first lot of credit given before the debtor went bankrupt? If so, that debt is included in the bankruptcy & the creditor would have been informed by the Official Receiver that the debtor was bankrupt (assuming the debt was listed on the bankruptcy form - if it wasn't then the bankrupt is at fault).
On getting that information, the creditor should have closed the account. If this was not done and the debtor went on using the store card then:
a) The debtor can be at fault - see first para. above; &
b) The store has made an admin. error, but that does not mean the debtor can avoid paying the debt back. This is because any debt incurred after the date of the bankruptcy is excluded from it and still has to be paid.
Was the first lot of credit given before the debtor went bankrupt? If so, that debt is included in the bankruptcy & the creditor would have been informed by the Official Receiver that the debtor was bankrupt (assuming the debt was listed on the bankruptcy form - if it wasn't then the bankrupt is at fault).
On getting that information, the creditor should have closed the account. If this was not done and the debtor went on using the store card then:
a) The debtor can be at fault - see first para. above; &
b) The store has made an admin. error, but that does not mean the debtor can avoid paying the debt back. This is because any debt incurred after the date of the bankruptcy is excluded from it and still has to be paid.
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