www.iva.co.uk

have just been declared bankrupt after a company (YES car credit)took me to court claiming I owed them money, I don't but needed time to prove it! Unfortunately the courts didnt provide me with this, I don't want to be bankrupt so my question is if I pay the company the money they say I owe can I reverse the bankruptcy petition??

Sorry, it's not that simple.

You can have the bankruptcy annulled by paying all the Bankruptcy Debts (note plural- everyone you owe money to) plus interest plus the bankruptcy expenses. It's too late to pay the petitioner now, I'm afraid.

You can also annul the bankruptcy by entering into an IVA. The earlier you do this the cheaper it will be. Whether it's in your interests depends upon your circumstances. You need to talk to an IP or lawyer as a matter of urgency to ascertain what is the best thing to do.

Ian

Did the company have proof from thier end that you owed them money? if they didn't I would say that the court has acted unfairly and you should contact them to appeal their decision. If the company cannot prove that you owed them money and they made you bankrupt I don't see that it is fair that you have to find ALL of the money you owed to annul the bankruptcy.

Sorry I forgot - You can also get an annulment if you can demonstrate that the Bankruptcy Order should not have been made. My fear here is that an attempt to annul on those grounds would fail because ample warning would have been given. Before presenting the petition there will have either been an expired statutory demand or a CCJ, both of which have provisions for a challenge.

Which method did Yes Car Credit take, Claire?

Ian

Sorry to hear that Claire.

You're not the only one -

why do they say you owe them money? Surely, there should be an agreement or contract that they will have to produce to prove the debt???