Pro's and con's of personal bankruptcy

Soldato
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Any one here declared themselves bankrupt?
As in - Personal bankruptcy...
To throw in the towel of your own accord so to speak.
Not those who have been made bankrupt by a bank or other third party.
What are the pro's and con of doing so.
How long are you bankrupt for.
Are you allowed a bank account
Who's in control of the money you do earn whilst under the that bankrupt roof
 
Associate
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If this is affecting you visit http://www.fool.co.uk check out the dealing with debt discussion board.
You'll be asked to fill in and post a Statement Of Affairs (SOA), in return you can expect to receive a wealth of helpful advice from professionals and people who have been through it.
It's a busy, helpful board so you won't be waiting long.
 
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i think so, everything u own has to go to cover the outstanding debts

anything else is written off

thats the good thing, bad thing is you will start a fresh with absolutely nothing, apart from an awful credit history
 
Soldato
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Depending on your circumstances, a Debt Relief Order (DRO) may be more appropriate. Check out the National Debtline's advice page on the matter here. They have a freephone helpline number too, and will surely be able to advise. Good luck in getting sorted one way or the other. :)
 
Soldato
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Speak to the National Debtline anyway mate, you have nothing to lose and they're very helpful.

National Debtline said:
What is National Debtline?

National Debtline is a national telephone helpline for people with debt problems in England, Wales and Scotland. Our service is free, confidential and independent.
At National Debtline we are committed to answering your call and then discussing your debt problems with you and the options available to you. The specialist advice that we give over the telephone is backed up with written self-help materials which we can send out to you for free. If your circumstances meet certain criteria, we can, if you are interested, assist in setting up a Debt Management Plan or debt relief order for you, for free.


If nothing else they'll give you your options and assist in any way they can. No charge, and they're completely independent (i.e. have nothing to sell to you or bias in offering one solution over another).
 
Soldato
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beginning to think that myself, now I am starting to read up on it :/

I spoke to a debt management company the other day to see what they could offer but I think the majority decision on those companies are that they are a bunch of scammers lol
 
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RSR

RSR

Soldato
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Have you looked at a IVA instead of going bankrupt?

Bankruptcy versus an IVA
This section of the site will discuss the main difference between a bankruptcy and an individual voluntary arrangement (IVA)
The debt support team at The UK Insolvency Helpline will discuss the debt management plan procedure, the IVA and bankruptcy to see what methods is best suited to your case.

There are many differences between IVA vs Bankruptcy, the main ones are:
■That assets are handled differently
■The home is treated differently.
■The time periods for each procedure are different.
■Employment status has to be considered before choosing each procedure
There are many implications to be considered with an insolvency procedure such an IVA or Bankruptcy and that is why many clients often decide to take out a debt management plan, debt consolidation loan or a remortgage for their situation.

If you are facing debt problems we can help you decide whether an IVA or bankruptcy is the best option.

Bankruptcy vs an IVA – The advantages of an IVA over bankruptcy.
■An IVA can write up to 75% of debt off
■In an IVA it is easier to get a mortgage, whereas in bankruptcy it is very not possible until discharge.
■An IVA will stop all interest on the debt.
■The IVA will leave the client debt free after 5 years maximum.
■After an IVA is completed the debts are clear.
■In a IVA you can keep your property, unlike bankruptcy where if you have equity you will need to sell it.
■In an IVA you get to keep control of your assets, whereas in bankruptcy they come under scrutiny.
■An IVA is better for your career progression whereas bankruptcy may cause problems in certain industry sectors.
■If you can do an IVA you can still be a director of a limited company, whereas in bankruptcy may you cannot.
■An IVA has less social stigma than bankruptcy.
■An IVA is easier on you credit rating than bankruptcy.
■In an IVA it is easier to get a bank current account, whereas in bankruptcy it is very difficult.
■Bankruptcy involves lengthy court procedures, whereas an IVA avoids court action
■Bankruptcy is more expensive to set up than an IVA.
Bankruptcy vs an IVA – The advantages of a bankruptcy over an IVA.
■A bankruptcy will last for 1 year whereas an IVA can last up to 5 years.
■A bankruptcy will write off all debts where as an IVA can only write of up to 75% of debt.
■Bankruptcy is better for clients with no assets. Where as an IVA may look for some of the equity in the assets.
■An IVA is not suitable for the unemployed, whereas bankruptcy can be considered for those not working.
■An IVA is not suitable for those on income benefits, whereas bankruptcy can be considered for those on benefits.
■Bankruptcy is better for clients with no assets. Where as an IVA may look for some of the equity in the assets.
■Bankruptcy is better for clients not concerned about the social stigma. Where as an IVA is better to reduce the social stigma.
Bankruptcy vs an IVA - The final decision is yours
For clients who are seriously in debt an IVA or bankruptcy may be the only option. Client must therefore understand the full implications of either procedure. The free debt advice offered by The UK Insolvency Helpline will help you decide whether an IVA or bankruptcy is the right route to take.
An IVA or bankruptcy will only have been discussed as an option if the Insolvency Practitioner feels that it is a suitable option for you to consider, based on the surplus income you have left once all your essential household costs have been accounted for. An IVA or bankruptcy are designed to give you peace of mind, safe that you will be debt free soon and able to make a fresh start. Do not let other debt companies undermine you by suggesting they have a better option.

http://www.insolvencyhelpline.co.uk/iva-guide/iva-vs-bankruptcy.php
http://www.ivazone.com/IVA/IVA-vs-bankruptcy.html



Andy
 
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A way to avoid some of the stuff ie assets, like car etc you can sell assets to someone at a nominal price. ie sell you pc too you dad for £50 pounds and just have a give them a recipt for sell.
 
Soldato
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I have been selling my assets since the beginning of the year..
PC just went to a mate today for 600 notes. :D
There's not a lot left to sell now.
 

4T5

4T5

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i think so, everything u own has to go to cover the outstanding debts

anything else is written off

thats the good thing, bad thing is you will start a fresh with absolutely nothing, apart from an awful credit history

This is False information & should be ignored.
Go to Citizens advice for Proper advice on a Serious matter, Please do Not rely on what is written hear no matter how well it is spelt or how good the grammar is.
 
Soldato
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This is False information & should be ignored.
Go to Citizens advice for Proper advice on a Serious matter, Please do Not rely on what is written hear no matter how well it is spelt or how good the grammar is.

Surely there's nothing wrong in following my earlier advice about speaking to National Debtline? They are recommended by CAB anyway, and are certainly easier to get hold of quickly. They're still open now, and will continue to be so until 9pm, for example. Completely independent and impartial.
 
Soldato
OP
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Cheers for your input malc. :D
It's nice to get some thoughts and opinions of others involved and gives me avenues to look down if nothing else. I wouldn't blindly go with what's written here without first investigating it thoroughly myself.
Just bouncing ideas around..


I can see that ringing the non profit / impartial advice help lines are definitely a first step in the RIGHT direction.

Also been reading the "money expert" website... plenty of good info and links to follow there too.
 
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