Creditors in Bankruptcy

[pm.e]

I had some new windows in my house, and due to a change in circumstances, I cannot pay the bill.

If I went bankrupt, would this bill disappear or would they come and take the windows out of my home?

I am not sure what payments become void in bankruptcy?

Please could someone help?

[MelanieGiles]

Hi pm.e

It would really depend upon the contract of supply between you and the sindow company. Were you dealing directly with the supplier, or were the windows purchased using a finance agreement? If the former, the supplier may have retention of title clauses in their contract which allow them to remove goods which have not been paid for, so long as they have not become incorporated into the fabric of your property, or would cause damage to remove. Clearly the removal of the windows would cause damage.

If the windows were bought using a finance agreement, then your contract is with the finance provider rather than the windows company, who will therefore already have been paid. In which case, it is very unlikely that your windows will be removed.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pm.e]

Hi Melanie,

I dealt direct with the window company and the windows are fitted to my property.

They have been in almost a year, but only recently they chased me for the monies, as during this time there was small outstanding jobs that they didnt finish.

If I went bankrupt, then the windows would remain, and they would have to make a claim to the OR?

Many thanks,

[pm.e]

Hi Melanie,

I didnt sign a contract with them, where does this leave me?

Can you have a look at my last blog as well for your thoughts???

Many thanks,

[MelanieGiles]

What is your blog named under?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pm.e]

Hi Melanie,

Sorry, I meant the previous discussions under this topic.

I am just worried that I havent paid for the windows, and what can I do to stop them taking the new windows out?

No contract was signed between the window firm, and I didnt take out any finance.

If I included the outstanding invoice/amount for the windows in my Bankruptcy, would this debt become void and would they have to make a claim to the Official Receiver?

Many thanks,

[MelanieGiles]

If you have no formal contract with the window supplier, then the terms of the Sale of Goods Act 1979 apply - where title to the goods passes upon delivery. I feel that your windows are safe, but you do need to include any debt due to either the window company or the finance company.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

[pm.e]

Thank you Melanie,

I was just worried that I would be left with no windows.

I will include the debt with my bankruptcy.

The windows have been in my house nearly a 12 month.