bankruptcy information

Ransom

Ransom

Ransom

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Joined
18 Oct 2002
Posts
860
Location
Buxton
Hi all, my dad is in debt foir £25,000 an altho he works full time on a farm (not the owner) he is classed as self employed, the loan repayments are over half his wage and he's finding it pretty hard going right now,

someone mentioned has he looked into it an im a little stuck as i know nothing about bankruptcy

would he be viable?

how do you go about it ?

does it cost you first to declare bankruptcy?

has anyone here been declared bankrupt?

thanks
Ransom

btw 80% of the money was for the cost of a divorce so it wasnt just spent willy nilly.
 
Bankruptcy is your last resort mate. You should get your dad to talk to his debtors to lower the payments. Normally they are willing to come to some sort of arrangement.

But bankruptcy should be your last choice.
 
Going bankrupt does cost you money. Iirc, it's £750. Has he looked at an IVA? He should seek professional advice. I would recommend that he speaks to the Consumer Credit Counselling Service and or CAB.

As said above, he should also speak to the people he owes money too and see if he can come to some sort of arrangement with them, problem is, that this will NOT be legally binding to either party unlike the IVA or bankruptcy.

Neither option is an easy one and must be taken very seriously, but his first step is to get proper advice.
 
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Talk to an independant advisor if possible, if not, check the numerous sites on the internet.
Avoid bankruptsy if at all possible; there are some reasonable debt amnagement firms on the web.
Good luck.
 
Going bankrupt isnt always the worst thing in the world. Tell your dad to not think that it is. Sometimes its the best solution and a valid solution.
 
Consumer Credit Counselling Service give you a client number and a formula to work out your payments pro rata in relation to your debts. This is a prefered method for people to arrange repayments most of the time creditors are happy to follow the repayment scheme you work out using the CCCS all you need to be is 100% honest about your income and outgoings. They worked well for me when I had to take time out three years back due to major surgury and I was left well in the red when I had to stop work and my bank and other lenders would not cover me with payment insurance.
 
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It really depends on what if any assets your dad has.
If he lives in rented accommodation & literally owns nothing of value then bankruptcy is a Very agreeable situation. If he has assets like a house/car/Gold stocks whatever then Bankruptcy is the Worst option.
Costs around 330 quid to go bankrupt & lasts around 12 months although if exceptional circumstances this can be reduced to just 6 months.
I would say though that if your father is working & managing to repay the debt then they will not look favourably on Bankruptcy.
A better option would be to go to the Citizens advice centre & get some personal help/coaching with managing your/his debts.
With the CAB office involved you will find the creditors much more agreeable to better repayment terms.

Hope that helps but feel free to ask more pertinent questions.
 
As Malc has said if your father has no assets and doesnt plan on wanting a mortage in the forseeable future then bankruptcy could be the best bet.

Bankruptcy will last for 12 months but the after effects last 5 years when your father will be refused credit.

He could also be made to pay back a percentage of his wage for a further 3 years aswell.
 
My father lives in a rented house that is part of the farm he works on

i will pass all this information too him and thanks very much for all the directions to go we have checked the local CAB and its monday 930 - 1400 so he is going to pop in then and see what his options are.
 
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