anybody ever declared bankrupt?

welshboy

welshboy

welshboy

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me and a friend were having a discussion today after he mentioned he just got released from bankruptcy just wondered if anybody here has ever been bankrupt and if so what was it like out of curiosity?
 
I knew someone who had declared himself bankrupt - he had to pay for the privilege!

At the time he was telling me about it he was also in dire straits but was too poor to pay the fee to declare himself bankrupt for the 2nd time. Strangely enough he never had a care in the world, nothing got him down, just lived for today!
 
yer you have to pay £465 or something to the courts to declare bankrupt, sounds daft but for some people its the only option. my friend seems happy he had about 20k worth of debt and no assets/secured debt so he has managed to wipe it off and start again although his credit rating will be affected for a few years.
 
paddyuk said:
yer you have to pay £465 or something to the courts to declare bankrupt, sounds daft but for some people its the only option. my friend seems happy he had about 20k worth of debt and no assets/secured debt so he has managed to wipe it off and start again although his credit rating will be affected for a few years.
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£465!! is that waivable? or would you have to wait for the people you owe the money to to make you bankrupt?
 
Morba said:
£465!! is that waivable? or would you have to wait for the people you owe the money to to make you bankrupt?
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I believe if a creditor makes you bankrupt, then it costs you nothing - which is why some people hold out for their creditors to bankrupt them, or invite them to make them bankrupt.

I believe of the £465 (?) costs, £150 are court fees. If you're on certain benefits, then this fee may be waived.
 
Morba said:
£465!! is that waivable? or would you have to wait for the people you owe the money to to make you bankrupt?
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Nope, if you want to go bankrupt off your own back, you can't do it if you're skint!

Just keep running up the bills until a creditor does it for you. ;)
 
So being declared bankrupt simply means your debt is cleared, and you have a bad credit rating for a few years?

Is there much of a downside to it at all? lol
 
Welshy said:
So being declared bankrupt simply means your debt is cleared, and you have a bad credit rating for a few years?

Is there much of a downside to it at all? lol
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Well it leaves you with no money for one. And im guessing that if you have a mortgage then most are secured on your house (i think) so you would be without a house im guessing. So it a bit bad i suppose.

I know that Drazic declared himself bankrupt not too long ago. Start of the year I think or late last year. Dont know how he managed it seen as his folks apparently own a load of property and are in the property development game in Eastern Europe etc
 
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Azza said:
Well it leaves you with no money for one. And im guessing that if you have a mortgage then most are secured on your house (i think) so you would be without a house im guessing. So it a bit bad i suppose.

I know that Drazic declared himself bankrupt not too long ago. Start of the year I think or late last year.
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I suppose not having a house would be considered a downside :p
 
If you have a lot of debt and no assets and dont own your own home then bankrupty can be a way out.

Most of the time you wont even be bankrupt for the year you will get a early discharge,then for 5 years after that you wont beable to get credit.

If you are working and you go bankrupt you may have to pay a percentage back everymonth for 3 years.
 
Main Effects of Petitioning for Bankruptcy

1. The Risk to Your Current Assets
With bankruptcy your assets (property, shares, anything of real value or even non-essential) can be sold to pay your creditors. This makes bankruptcy a more sensible option where you don't have much in the way of assets. It also means declaring bankruptcy to cope with non-priority debts puts all the debtor's property at risk ... a strategy that would seldom be advised.

3. The Effect on Your Future Credit
An undischarged bankrupt must declare his status when seeking credit of more than £500, including hire purchase and conditional sale agreements. It is an offense not to do so.

4.The Effect on Your Employment or Business
There are certain jobs you cannot have if you are an undischarged bankrupt: Company Director (or concerned directly or indirectly in the management of a company), MP, Councillor, Magistrate or Estate Agent.
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Those are the main points.
 
A good friend of mine went bankrupt along with his Mrs to the tune of 70k. He is a postman, she works at tesco. 2 kids and a council house.

His kids had everything electrical you can think of, he had the best gadgets etc etc. When they knew the hammer was coming they went nuts. Clothes shopping etc.

The only item that got taken from them was a couple of year old astra. Naturally they couldnt take the house or stuff from the kids.

They had to pay back about £50 a month for 3 years and all their money had to go into a building society for 3 years. No cash card to withdraw money.

He was gutted to start with but then realised he was better off and had more disposable income because he was paying only £50 a month in repayments instead loans and cards all over the place.

It really bugged me at the time that he didnt seem to really get a punishment.
 
Azza said:
Whats number 3? LOL
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No 2 ;)
The Risk to Your Future Assets

Where the debtor expects to receive an inheritance or already has assets, consideration should be given to any increase in value they may have whilst a bankruptcy order is in place.

Arranging matters so as to avoid losing out in such circumstances may be possible (such as amending a will) but not by transferring assets as detailed above.
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Full list here
http://www.debtadvicebureau.org.uk/bankruptcy/main_effects.html
 
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