§ Mr. DrewTo ask the Chancellor of the Exchequer if he will examine what recompense exists for those people who have recently declared bankrupt who have been offered further credit by organisations in the knowledge that they are dealing with bankrupts. [37613]
§ Miss Melanie Johnson[holding answer 26 February 2002]: I have been asked to reply.
No recompense is available to bankrupts simple as a result of being offered credit by organisations in the knowledge that they are dealing with bankrupts. A bankrupt is guilty of an offence if, either alone or jointly with any other person, he obtains credit to the extent of the prescribed amount (currently £250 or more) without informing the person from whom the credit is obtained of his bankrupt status. If credit is obtained after disclosure of the relevant information no offence is committed.
§ Mr. DrewTo ask the Chancellor of the Exchequer what safeguards exist to protect people in the process of being declared bankrupt from being harassed by money-lending organisations. [37612]
§ Miss Melanie Johnson[holding answer 26 February 2002]: I have been asked to reply.
At any time after a bankruptcy petition has been presented or a bankruptcy order has been made the court can impose a stay on any action or legal process against the property or person of the debtor. After a bankruptcy order has been made no creditor has any remedy against the property or person of the debtor in respect of a debt provable in the bankruptcy. There is nothing to prevent the offering of loans to people in such financial difficulty.