2006-08-20 21:09:43 · 20 answers · asked by Babycake 1 in Business & Finance ➔ Personal Finance
Yes, bankruptcy is allowed if you are unable to pay off the balance of your creditors.
Depending on your specific situation, there may only be certain types of bankruptcy that you can declare, and you ill likely have to have a portion of your monthly paycheck appropriated to pay off your debtors.
Think about this decision carefully, as it does cost a bit of money to actually declare bankruptcy, and will ruin your credit for up to 10 yrs.
2006-08-20 21:17:09 · answer #1 · answered by Shofix 4 · 1⤊ 0⤋
Yes, however you must still make payments towards your debts for the full 3 years.
On an average wage of around £1200 per month take home pay you must pay around £200 - £300 towards creditors.
You will also lose your home if owned and have to sell assets such as car etc.
You must inform anyone offering credit that you are bankrupt (if credit over £250)
This even includes BT, so you may technically have your phone service withdrawn in your name.
After the 3 years of sequestration you are automatically discharged however you may well never obtain mortgage or credit card etc again from a typical high street lender although other companys and lenders will consider you at higher rates.
2006-08-20 21:28:36 · answer #2 · answered by bty105692 1 · 0⤊ 1⤋
You can go bankrupt for as little as £750, but your liabilities must be more than your assets(you have to be paying out more than your earning) why would you want to go bankrupt there are other ways to get back in control of your money. Bankruptcy will screw up your life for quite a while even though you are discharged from bankrupcy after 12 months you will have to declare it to any finance/credit company then they will charge huge amounts of interest, then you will regret trying to take the easy way out of debt.
2006-08-23 00:28:29 · answer #3 · answered by si 2 · 0⤊ 0⤋
Is Bankrupcy really the only answer for you.
I got myself into a lot of troube 3 years ago and had no choice but to either get yet another loan or join a debt management company and to be honest, i don't regret my decision to join the DMC.
although it is going to take me even longer to pay off my debts, the rate per month is a figure i have agreed i can afford, and it hasn't gone too much damage to my credit rating either.
My advice is to give this ago before you get yourself into bankrupcy.
2006-08-21 00:36:44 · answer #4 · answered by Chicky-Dee 1 · 0⤊ 0⤋
Im almost certain you can, someone I know has just done the same. But its not as easy as you think, Its cost him a fortune to actually go bankrupt.
2006-08-20 21:15:35 · answer #5 · answered by lollipop 2 · 0⤊ 0⤋
Yes.
2006-08-20 21:13:26 · answer #6 · answered by Anonymous · 0⤊ 0⤋
yes go to the court and get some forms
2006-08-24 19:39:11 · answer #7 · answered by Anonymous · 0⤊ 0⤋
bty105692 has clearly and concisely answered this question, but I would also add that you have all credit cards taken from you and lose access to your bank accounts. If you are married your credits will persue your spouse for monies owed also.
2006-08-20 21:51:50 · answer #8 · answered by Lunar_Chick 4 · 0⤊ 1⤋
Yes but you are limited as to how much money you can earn as it will be taken from you.
2006-08-20 21:20:17 · answer #9 · answered by kerrykinsmalosevich 3 · 0⤊ 0⤋
you can do but I cant jeopardise future jobs you may go for like with certain financial institutes, the police or any other public sector ... it is normally on job application forms.
2006-08-23 09:41:09 · answer #10 · answered by Rebz 5 · 0⤊ 0⤋