further to my other thread, and as a last resort...
bankruptcy.. anyone done it or know anything about it?
pro's and con's?
bankruptcy.. anyone done it or know anything about it?
pro's and con's?
bankruptcy?
- Thread starter ColJack
- Start date
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If you go down that route it may seem like the answer to your prayers but it isn't.
You won't get credit for God knows how many years, even after you become solvent again. If you do it will be at an exhorbitant interest rate. You will very unlikely be able to get a mortgage and it can even affect any insurance you may want to take out, (including car insurance). basically you would be classed as a very poor/high risk for years to come.
Before you declare bankruptcy you have to sell/forfeit EVERYTHING you own and I mean everything that is saleable, no matter how little you would get for it. There can also be an attachment of earnings if you should get a job in the future.
It may seem like the only way out at the moment but you will pay far more in the long run.
You won't get credit for God knows how many years, even after you become solvent again. If you do it will be at an exhorbitant interest rate. You will very unlikely be able to get a mortgage and it can even affect any insurance you may want to take out, (including car insurance). basically you would be classed as a very poor/high risk for years to come.
Before you declare bankruptcy you have to sell/forfeit EVERYTHING you own and I mean everything that is saleable, no matter how little you would get for it. There can also be an attachment of earnings if you should get a job in the future.
It may seem like the only way out at the moment but you will pay far more in the long run.
Also costs a couple of grand.. get a debt relief order.. ask the CAB
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go speak to the cab, someone i knew did it. just had personal debts with credit cards etc. it was very easy. just had to make an application to the county court, and submit certain papers. then go to an informal hearing and they listen to your reasons and then the declaration is made. you then get interviewed to go through all the debts etc and after a year he was discharged. very painless and costs virtually nothing.
I was gobsmacked as i couldnt believe how easy they had made it for people to do. There are ramifications for the long term however with regards credit etc.
I was gobsmacked as i couldnt believe how easy they had made it for people to do. There are ramifications for the long term however with regards credit etc.
J
Johnmelad502
Bankruptcy is a very serious matter. Declaring your self bankrupt can have disastrous long-term implications.
If you are declared bankrupt you can expect to: -
■Have your situation advertised in the local press and the London Gazette for all to see.
■Be required to fill in numerous forms and have an extended meeting with the Official Receiver, and, if appointed, a Trustee in Bankruptcy who will thoroughly investigate your affairs.
■Have any business you own immediately closed and any employees dismissed.
■Lose any assets of real value including your home, life insurance and possibly pensions
■Lose any assets you may acquire during the term of your bankruptcy such as inheritances, insurance settlements, growth of asset value in your home.
■Have your building society, creditors, landlord etc immediately informed.
■Have all bank accounts, credit cards etc closed. Anything you might be leasing, or buying on hire purchase, such as your car will be immediately returned to the owner.
■Lose professional and business status, have some employment opportunities prejudiced, face rejection from many associations and societies.
More
If you are declared bankrupt you can expect to: -
■Have your situation advertised in the local press and the London Gazette for all to see.
■Be required to fill in numerous forms and have an extended meeting with the Official Receiver, and, if appointed, a Trustee in Bankruptcy who will thoroughly investigate your affairs.
■Have any business you own immediately closed and any employees dismissed.
■Lose any assets of real value including your home, life insurance and possibly pensions
■Lose any assets you may acquire during the term of your bankruptcy such as inheritances, insurance settlements, growth of asset value in your home.
■Have your building society, creditors, landlord etc immediately informed.
■Have all bank accounts, credit cards etc closed. Anything you might be leasing, or buying on hire purchase, such as your car will be immediately returned to the owner.
■Lose professional and business status, have some employment opportunities prejudiced, face rejection from many associations and societies.
More
Bankruptcy isn't for everyone, and there are obvious consequences, but if there is no other way, and you have no assets of worth, then sometimes it is the best way. IVA's are also another way, basically the debt that you have, if over 20 grand I think, will be decimated dependant on your current status, and you will pay back a percentage over a set period of time, after which your debt is cleared. During this time, no creditors can hassle you, and you will need to fill out a declaration form every year to say that your circumstances haven't changed.
It's all very well for other people to say that you should or shouldn't do this or that, but all I would say is research all available info through our great world wide web, so you make an informed choice.
A couple I know have been made bankrupt TWICE, didn't learn from the first experience, but still go on holidays and treat themselves. They use it as a debt clearance tool. Each to their own I guess !!!
It's all very well for other people to say that you should or shouldn't do this or that, but all I would say is research all available info through our great world wide web, so you make an informed choice.
A couple I know have been made bankrupt TWICE, didn't learn from the first experience, but still go on holidays and treat themselves. They use it as a debt clearance tool. Each to their own I guess !!!
like I said, it's only an option I'm looking at as an absolute last resort..
if the bailiffs are beating down the door then I've nothing left to loose but the debt.., so why let them take all of my stuff and still owe them money?
my cousins husband was bankrupted after his first marriage failed..
they let him keep the house and he was stuffed for credit for 2 years, but he's ok now and doesn't regret it..
if the bailiffs are beating down the door then I've nothing left to loose but the debt.., so why let them take all of my stuff and still owe them money?
my cousins husband was bankrupted after his first marriage failed..
they let him keep the house and he was stuffed for credit for 2 years, but he's ok now and doesn't regret it..
That's the thing Col, bankruptcy nowadays is not frowned upon, and certainly doesn't carry the stigma that it used to. Yeah, you get your name in the local rag, and a London paper (dunno which one!), but that is a small price to pay for peace of mind and no debt, in my opinion 
I think if you file for bankrupcy it onlly last's for 2 year's , think it was 7 at on time , when u say Bailiff's beating down your door , it depend's on the debt & who u owe it to , Inland revenue bailiff's can kick your door in , other debt's including council tax which is the only debt you can ultimately be jailed for , only have a right of peaceful entry !!!!
but bear in mind,ONCE you have allowed a bailiff entry he can obtain entry anytime whether you are there or not.
also remember once a bailiff has recorded a list of items of value within your home,YOU are not allowed to sell them at all to raise funds.
also remember once a bailiff has recorded a list of items of value within your home,YOU are not allowed to sell them at all to raise funds.
Be very careful with bailiffs, as some who has moved in them circles and most my friends do it as a sideline to there door work. There are a lot of tricks they use, and some can be very nasty. Watch your back at all times
And mugs like us pick up the tab!
Theres a difference to scum like this and genuine cases where the person has no option left open to them. next time they try it they should forfeit everything and spend some time behind bars with no possibility of credit from anyone in the future.
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