bankrupcy

[Kimbo]

i found this -

Bankruptcy is a legal status that usually lasts for a year and can be a way of clearing debts you can't pay. When you're bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are 'discharged' (cancelled).

Bankruptcy normally lasts for one year. After this time, you'll be 'discharged' from your bankruptcy regardless of how much you still owe.

Your discharge could happen earlier if you co-operate fully with the Official Receiver. However, in a small number of cases and if you've behaved irresponsibly (eg, not cooperating), bankruptcy can last for much more than one year.

does that mean you're back to normal after a year? or is that just thinking silly lol

 

[Gem & Leland]

no deffo not normal , a friend went bankcruopt and still cant get a bank account etc

im in an iva if u want details of that

altho , not sure whats gonna happen when i leave work lol

 

[Kimbo]

he has four loans that he pays each month and the total that he owes is about £15,000.
what if he got a loan from the bank to pay all the others off, then he would just have one payment coming out each month and it would be less coming out his wage wouldn't it? its confusing

 

[Gem & Leland]

if his only in 15k he might not be in enought debt for an iva , and i also wouldnt think it was worth going bancrupt over , i would go to your bank and see what they say , or cit advice as there free an unbiased .

 

[Kimbo]

ok thanks gem

 

[Misslarue]

My OH went bankrupt (due to his business) last year. He was discharged after about 10 months but anything he gains i.e. a house etc within 3 years can be taken off him. You can be bankrupt for up to 3 years. It all depends on why you are bankrupt. For instance if you are in debt because of gambling, they look badly at that and you can even go to prison. They will take any assets. They even took our car that didn't work and was only worth about £600. Also depending how much you earn..............because my OH is on a good wage he has to pay the Official Receiver his excess cash every month for 3 years, although he technically isn't bankrupt anymore.
You also have to pay to go bankrupt (trying to remember but its about £400 ) Which is ridiculous, you have no money!!
But before you can even declare bankruptcy you have to be advised to go bankrupt by a financial advisor. There is a free organisation who will work out all your outgoings etc and tell you what's your best option. When OH gets home I find out what its called, my memory sucks!
He also went to the CAB, they weren't interested and told him due to the sheer numbers they no longer deal with bankruptcy cases

 

[Kimbo]

My OH went bankrupt (due to his business) last year. He was discharged after about 10 months but anything he gains i.e. a house etc within 3 years can be taken off him. You can be bankrupt for up to 3 years. It all depends on why you are bankrupt. For instance if you are in debt because of gambling, they look badly at that and you can even go to prison. They will take any assets. They even took our car that didn't work and was only worth about £600. Also depending how much you earn..............because my OH is on a good wage he has to pay the Official Receiver his excess cash every month for 3 years, although he technically isn't bankrupt anymore.
You also have to pay to go bankrupt (trying to remember but its about £400 ) Which is ridiculous, you have no money!!
But before you can even declare bankruptcy you have to be advised to go bankrupt by a financial advisor. There is a free organisation who will work out all your outgoings etc and tell you what's your best option. When OH gets home I find out what its called, my memory sucks!
He also went to the CAB, they weren't interested and told him due to the sheer numbers they no longer deal with bankruptcy cases

wow thanks for that. i had such a wrong idea about it all lol

 

[Misslarue]

no probs hun, good luck with whatever he decides to do

 

[sunnyday]

There's a difference between going bankrupt and taking an insolvency scheme - I'm not up to date with the differences but from memory the implications of an insolvency scheme are less harsh then going bankrupt - you still get to have a bank account etc but you are on a structured repayment scheme to your debtors.

There's a charity that can help, funded by all the high street banks - here's the link http://www.cccs.co.uk/home.aspx

Hope this helps.

 

[Sherlock]

Have a read on this site

http://www.clearstart.org/bankruptcy-process.php

Loads of info about the process and what happens.

 

[emma28]

Kim, have you looked at the Martin Lewis ( money saving man ) website?

We were in quite a lot of debt...thinking about bankrupcy after the fire but on there we learnt about claiming our bank charges back...we got about 3 grand between us, even off old accounts that were closed

Also if you have a credit agreements and the company cannot provide the original signed documents, the debt is then null as they cannot prove you took the agreement out...this works with car repayments and loans other than banks etc Also with like, debt collecting agencies, like when the bank sell your debts and stuff...

It was a mahoosive help to us....

 

[Flossy82]

Hey there kimbo me and the o/h were considering this as are debts are quite a bit well to us anyway we owe about 40 k bewtween us Anyhow we went with a company called Gregory Pennington who consolodated all our debts into one and we pay them 264 pounds a month which then gets divided off bewtween all our creditors and incl int he price to them we get a moneymanager who deals with all our finances money's etc etc. I know my das wife went bankrupt as she was in seriuous debt and she payed 328 to go bankrupt which last's 18 months although she has still beee able to rent a house etc so im not quite sure how it all works though.

 

[kellie80]

I went bankrupt in 2005 and was discharged after 12 months. I got a bank account straight away although I'm still not allowed a debit or credit card or an overdraft. I don't mind really it stops me getting into debt again. The bankrupcy stays on your credits record for 6 years after then after that you don't have to even declare it. We didn't get anything taken of us apart from the car but we could of quite easily kept it, we just didn't know that at the time.

 

[Kimbo]

thanks everyone, you've helped me loads here