Does going bankrupt stop a bailiff
- 21 Jun 2022
After you go bankrupt, any bailiff appointed to collect debt must stop taking action against you. If they arrive at your doorstep, they have to leave immediately.
Included in this article:
- What happens to a bailiff if you go bankrupt?
- How quickly does bankruptcy protect you?
- What if you have already agreed a payment plan?
- Will your car be safe?
Rather speak to person? Give us a call (0800 044 3194) or click here to complete the form below and we’ll call you
What happens to a bailiff if you go bankrupt?
Once you have gone bankrupt, all of your unsecured creditors must stop collection and enforcement action against you. This includes any account that has already been transferred to a bailiff.
The creditor who appointed the bailiff must contact them and cancel the action.
The bailiff company is not allowed to charge you any further amount for their time. They must collect any payment they are owed for their service direct from the creditor who instructed them.
If anyone now calls at your door to collect debt, all you need to do is tell them you have gone bankrupt. They may ask for the reference number and a copy of the Order to verify the situation. You should give this to them. After this, they can take no further action against you and must leave.
You can find your bankruptcy reference number and download a copy of the Order document by logging onto your account via the Government website.
How quickly does bankruptcy protect you from a bailiff?
Worrying that a bailiff will knock on your door at any moment or try to clamp your car can be very stressful. This is where going bankrupt can really help.
You get immediate legal protection from all your creditors on the day your application is approved. This will normally be the next working day after you submit it.
It can take some time for information about your circumstances to be sent from the original creditor to the bailiff’s office. It is therefore possible that someone might still turn up at your door even a week or more after the Order has been issued.
If this happens, don’t worry. All you need to do is inform them of your circumstances and confirm your reference number. They have to go away.
Are you saving to pay for your bankruptcy? If a bailiff calls during this period, buy yourself some time by telling them you will be going bankrupt and so can’t make any payment to them.
What if you have already agreed a payment plan?
You may have already agreed a payment plan with the bailiff and and started making payments. Once you are bankrupt, you must not pay this any more.
In fact, you are no longer allowed to continue paying towards the debt at all. If you do it would be a preferential payment. The Official Receiver can then actually claim any such payments back from the Bailiff company.
Bailiffs know this. It would therefore be a waste of their time to continue demanding payment from you.
You will need to inform the Official Receiver about any money you have recently handed over to a bailiff. They may be able to recover these funds if they believe the payment was made preferentially. The OR will retain any funds recovered in this way. They will not be returned to you.
Will your car be safe?
After you are bankrupt, a bailiff is no longer allowed to take any of your assets. Your car will not be at risk of being clamped or taken away.
If your vehicle has already been clamped or is clamped after the Order is issued, you simply need to contact the bailiff company and inform them of the situation. They must come and release it.
Remember, the Official Receiver will consider the value of your car. Given it is less than £2000, you should be allowed to keep the vehicle as long as you need it (for work and/or family purposes).
If your car is worth more that £2000 or is on finance, speak to us about the options you have for keeping it.
Has one of your creditors appointed a bailiff? Going bankrupt can protect you and your home. For help, call us (0800 044 3194) or complete the form below. The advice is free and confidential.