How do you become Bankrupt?

Question

Please tell me the ups and downs of becoming bankrput.
What happens to debts that you have?
Can you work? I am working at the moment (not self employed).
When can debts be written off?
I am in the UK.

Thanks. x

Answer 1

Hi there again

In addition to my outline of bankrupty in the previous question there are ups and downs to consider.

Some downs are:

You lose control of your assets.
You cannot obtain credit for over £250 without the permission from the lender.
You cannot act as a company director.
You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
You may not practice as a Charted Accountant / Lawyer.
You may not act as a Justice of the peace (JP).
You may not become an member of parliament - doesn't apply to many of us :-)
You may not become a member of the local authority.
Your credit is affected for many years after the annulment. (THIS IS A KEY ONE TO NOTE)
You may be publicly examined in court.

The ups are more straight forward.

Basically you clear yourself of debt (but there may be some restrictions), however as the downs can be restrictive the person may want to consider an IVA instead (outlined in my answer to your other question.

Summary of bankruptcy from my answer to your other question:

When you are declared bankrupt yours debts are effectively cleared. Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order - although there is the possibility that in some cases the bankruptcy discharge period will be less than one year.

Who can become bankrupt?

A debtor who is insolvent can be the subject of proceedings.
A person can petition their own bankruptcy.
Creditors can, alone or jointly, apply for a debtor to be made bankrupt where someone owes at least £750.
Supervisor of an IVA (seem my comments on IVA above) can apply for bankruptcy proceedings against a debtor where they have defaulted.
Only people normally resident in England or Wales are subject to bankruptcy law

I hoep tihs helps and good luck for whatever reason the question was asked.

Answer 2

Bankruptcy laws are different in every country; however in Australia when you feel unable to pay your debts and you cannot come up with an arrangement to your creditors then filing for bankruptcy may be your best option. There are two ways; first, you may voluntarily lodge a debtor's petition to become bankrupt. Second, a creditor may also bankrupt you. For more details, visit www.bankruptcyexpertstoowoomba.com.au.

Answer 3

All your debts will be gone, but some things like a car might have to be sold to return some of the money you owe. It cost around £500, you will need to go to court. I would go to your CAB for more help on this
good luck

Answer 4

my ex husband declared hmself bankrupt to stop paying child support all the debt gets written of unless you have it in joint name or a garantor if you have a car on hp it will get written off but they will take the car .Hope this helps

Answer 5

hello.this is agent mulder.please calm down

Answer 6

send me all your bank details