Pro's and con's of personal bankruptcy
- Thread starter Fuzz
- Start date
Soldato
Not true at all, with large things like a house, car etc, these will generally be put towards the debt, personal items, e.g. furniture, electronics, books, cds, dvds are generally ignored, unless the item is of unreasonably high value. The way it was explained to me was basically, if you could sell the item, buy a perfectly functional alternative, and still have a reasonable amount of money left over, then they will usually make you do that. E.g. if you have an antique dining table worth a lot of money, you sell it, buy a cheap Ikea jobby and the difference goes towards the debt.
You will be an undischarged bankrupt for 12months (this is the typical length of time, although in some circumstances can be reduced or extended) during this time you will have to declare all of your income and outgoings to the Official Receiver. Based on this, they will calculate whether or not you are required to make any contributions to the debt (and IPA or IPA). If they decide you need to, these payments will carry on for 3 years. The cut off point for making payments is around £100 disposable income/month, anything above that and you'll probably have to pay. There's a list of expenditure "allowances" here: http://www.insolvency.gov.uk/freedo...l/Ch25-36/Chapter31/part7/part2/part_2.htm#19
You will also need to inform the official receiver of any other changes in circumstances, e.g. if you move house, get married, have kids etc.
While you are undischarged, you are not allowed to borrow more £500 from anyone without informing them you are bankrupt (this includes from your mates/parents etc)
At the end of the 12 months, you are discharged from bankruptcy, essentially you're now "free" unless you have an IPA/IPO, the only negative side now, is the fact you have a huge black mark on your credit rating, the bankruptcy is taken off your credit rating after 6 years, although i believe it affects it pretty much forever.
You are allowed a bank account, however good luck getting one; none of the high-street banks will touch you.
This is a bad idea, if they check up on it the asset will be seized by the official receiver.
I can indeed wait a week because on Saturday I am jetting off to Ibiza for a weeks holiday
Again, a bad idea, they can check up on things like this, and if they think you are taking the urine, they can actually refuse your bankruptcy - I believe in this case the fee is not refunded either.
Oh yeah, did I mention it costs (iirc) £530?
Declared myself bankrupt in May, so if you want any more information feel free to email my trust.
As others have said however, speak to an expert before making the decision, it's not something to be taken lightly.
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Indeed :\
I made myself bankrupt in 2004 following a lot of money spent trying to get an IVA sorted only to have one of my creditors refusing and derailing the whole thing.
I was personally discharged at the end of 2004 (did the deed in april). For the first year of bankpuptcy I payed no tax, instead I had to pay the equivilant amount to the official reciever as well as an amount that they deemed reasonable for me for a total of 3 years so I still made some payment towards my debt, although it was nowhere near the original repayments.
The order still shows on Equifax and Callcredit for me so I still have a very basic natwest bank account but thats OK. It'll come off everything in April 2010 and then it'll be a fresh start pretty much.
One thing i would really advise is talking to the CAB or some other organistion that knows what they are talking about and avoid anyone that asks for money to sort it for you. Thats what happened to me and I blew my chance at an IVA
I was personally discharged at the end of 2004 (did the deed in april). For the first year of bankpuptcy I payed no tax, instead I had to pay the equivilant amount to the official reciever as well as an amount that they deemed reasonable for me for a total of 3 years so I still made some payment towards my debt, although it was nowhere near the original repayments.
The order still shows on Equifax and Callcredit for me so I still have a very basic natwest bank account but thats OK. It'll come off everything in April 2010 and then it'll be a fresh start pretty much.
One thing i would really advise is talking to the CAB or some other organistion that knows what they are talking about and avoid anyone that asks for money to sort it for you. Thats what happened to me and I blew my chance at an IVA
Soldato
avoid anyone that asks for money to sort it for you. Thats what happened to me and I blew my chance at an IVA
Indeed, forgot about this, don't pay any of your creditors. Inform them that you are taking financial advice. If you pay any of them, it's seen as preference and can affect whether your bankruptcy is approved. If you've decided on bankruptcy, don't communicate with them other than informing them of the court details.
![[TW]Fox](/data/man-of-honor/2009.png){kind=avatar}
I can indeed wait a week because on Saturday I am jetting off to Ibiza for a weeks holiday
So you want to screw over all the people you owe money to by declaring yourself bankrupt yet you wont curtailing your frivilous spending?
You cannot afford to go on holiday. Nor tart up your BMW.
You must take some personal responsibility for the mess not take the easy way out
What about your forthcoming baby? If you are on the verge of bankruptcy why are you going on holiday!?
There is no baby.
The holiday was booked and paid for in cash many months ago.
The BMW is the cheapest way I could find of having something to do beside sit behind this computer every day.
It's the cheapest car I've bought, I was on the verge of scrapping it but managed to put it back together at minimal cost because that's what I do for a living and parts are easy to come by.
If you want to have a pop at my "frivolous spending" have a go at the fact I spent 40 grand on my last car, the Impreza, as that's what got me in this position in the first place.
Oh and I am not on the verge of bankruptcy. I have been paying the debts that are due...
What I am at odds with is the banks and Credit Card companies hiking the interest rates up for no reason, so I feel I'll never get out of the debt I am in.
I feel I need to find a way to "shove two fingers up at the system" because they are starting to take the ****
The holiday was booked and paid for in cash many months ago.
The BMW is the cheapest way I could find of having something to do beside sit behind this computer every day.
It's the cheapest car I've bought, I was on the verge of scrapping it but managed to put it back together at minimal cost because that's what I do for a living and parts are easy to come by.
If you want to have a pop at my "frivolous spending" have a go at the fact I spent 40 grand on my last car, the Impreza, as that's what got me in this position in the first place.
Oh and I am not on the verge of bankruptcy. I have been paying the debts that are due...
What I am at odds with is the banks and Credit Card companies hiking the interest rates up for no reason, so I feel I'll never get out of the debt I am in.
I feel I need to find a way to "shove two fingers up at the system" because they are starting to take the ****
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Did I miss some epic lulz?
Soldato
Have you tried requesting a copy of your credit agreements from all your creditors ?
Man of Honour
To try and weasel out of agreed contracts by looking for tiny flaws in terms and conditions or the contract most likely...
Quite. Not sure what I can say really - if she truely lost the baby then I am deeply sorry. But there was a lot of doubt in the thread as to whether she was lying to him in the first place so who knows what really happened, I think its best we leave it though.
Soldato
To see if they hold a valid credit agreement.Some agreements are flawed i.e certain prescribed terms may be missing, or they may not even have the agreement at all.
I have a card with HSBC, and i have found out that they haven't got the agreement.If they decided to take me to court for none payment then they wouldnt have a leg to stand on, as the court couldn't enforce what they don't have.
The debt doesn't go away, but it cant be enforced in a courtroom.
Not an easy process, and your credit rating will suffer along the way. I am not condoning debt avoidance, but it can put you in a stronger position.
There is some good advice in the site below
_www.consumeractiongroup.co.uk/forum
Permabanned
Something always seems fishy about nokinidea's posts. Like the pregnancy test at the GP which they don't do anymore.
I'm calling bs, sorry.
I'm calling bs, sorry.
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Soldato
You would think a big organisation such as a Bank would get something as important as a credit agreement correct first time
Soldato
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- 10 Mar 2006
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There is no baby.
The holiday was booked and paid for in cash many months ago.
The BMW is the cheapest way I could find of having something to do beside sit behind this computer every day.
It's the cheapest car I've bought, I was on the verge of scrapping it but managed to put it back together at minimal cost because that's what I do for a living and parts are easy to come by.
If you want to have a pop at my "frivolous spending" have a go at the fact I spent 40 grand on my last car, the Impreza, as that's what got me in this position in the first place.
Oh and I am not on the verge of bankruptcy. I have been paying the debts that are due...
What I am at odds with is the banks and Credit Card companies hiking the interest rates up for no reason, so I feel I'll never get out of the debt I am in.
I feel I need to find a way to "shove two fingers up at the system" because they are starting to take the ****
You're the guy with the £40k 400bhp impreza? I read your thread thinking 'how the hell can people afford to do all this?'.
Did you do it all on tick?