i am in about £21k worth of debt i have no house and just recently had my car taken away from me. I was out of work for about 3 months which is why all my payments have fell behind and now a lot of my creditors are asking for the full amounts. The money i do earn now i am back in work is just about enough to live on what with getting to and from work, rent, food and essentials i would be lucky if i have £150 left over a month!!
2006-08-20 21:25:20 · 9 answers · asked by Babycake 1 in Business & Finance ➔ Personal Finance
god there are some people writing utter GARBAGE in answer to this question. You will not lose your job, your tax code doesnt get changed to 0.
how about an answer from someone who has been there...
go and talk to Citizens Advice. Bankruptcy is not something to be taken lightly. £21K is not a lot, so they might be able to sort you out with something else. If they recommend it then you go to Court, make an applicaiion (you have to pay for this and they dont take cheques). Then an official receiver is appointed, you discuss various options with them, your bank will only close the accouint if you owe them, otherwise they will probalby take your cards back. you cant have an overdraft, you cant apply for credit over about £250 without telling them you are bankrupt, but life goes on. then you find yourself years later with credit card companies throwing themselves at you, so all is not lost yet.
2006-08-21 02:58:56 · answer #1 · answered by alatoruk 5 · 1⤊ 0⤋
Right firstly u have to pay to go bankrupt. I think it costs around £400-600 that includes court fees etc. Then your bank account will be closed by a person called an official receiver. They will talk to you more in depth about what happens next but all your creditors will be contacted by this person. make sure you declare any assets savings etc and clear your bank account.
The person appointed by the court to take over your debts will be the one to write to all the people u owe money to so theres no worry there. Be careful if you own your own property u will lose that. And the car u had pressumably on hp has gone- although in certain circumstances they will allow u to keep it.
And as for work, your tax code will be reduced to nil, and you will only be allowed to work a certain amount of hours. The employer is not at liberty to keep you on. And as for credit you could be looking at anything up to 12 years before u can get get credit again after your discharged (free from your debt) which could take anywhere between a year and 3 yrs).
So yes it may look the easy way out but you lose everything.
think wisely before doing so
2006-08-20 21:44:12 · answer #2 · answered by Scatty 6 · 0⤊ 0⤋
You do actually get credit again but it takes about 3 years I think, it sounds like it would be well worth your while to get declared bankrupt although not the perfect situation to get yourself into.
Best advice would be to go and see the citizens advice bureau and they can deal with all your creditors on your behalf and file for your bankruptcy. And it doesn't matter if you are working.
2006-08-20 21:35:36 · answer #3 · answered by kookiboo 3 · 1⤊ 0⤋
I think you can not get credit for 10 years. I can't honestly say, as i've never been in financial trouble, but one of my friends got screwed over by her ex husband. She went bankrupt and can no longer get a mortgage or credit for anything. I also think you have to pay to go bankrupt aswell.
I'd think long and carefully before going Bankrupt and would only ever use this as a very last resort. Go to Citizens Advice they'll give you advice.
2006-08-20 21:40:17 · answer #4 · answered by ♥ Nicola ♥ 3 · 0⤊ 0⤋
i know where you are coming from!
i have just had to go with a debt management company to sort all my debts out, i am in debt with about £8k and my repayment to the debt management company are £200 per month which i will be paying over 3 and a half years, i asked to pay £200 as i could have only been paying £120 per month but want to get rid of the debt.
A family member went bankrupt about 5 years ago, but he can't get a house or any kind of credit (not that you would want to).
i would try a debt management company and see how you go with them, just tell them what you can afford to pay each month and they will help you out there here to help not get you in more debt,
i have gone with Byrom & Keeley and they are the best!! let me know if you want there number.
hope you get sorted there is nothing wost then being in debt and having no money.
2006-08-21 02:42:05 · answer #5 · answered by marie 2 · 0⤊ 1⤋
to declare yourself bankrupt you have to get taken to court first from one of your creditors. You wont be allowed any credit for 3 years and after that, you must tell anyone that's offering credit that you have already been declared bankrupt in the past.
2006-08-20 21:34:10 · answer #6 · answered by I know nothing! 5 · 1⤊ 0⤋
It will be hard to ever get credit again.
Bankrupcy laws are different in the europe and US I think.
Basically it frees you from debt and the credit companies in which you owe get everything of value you own.
You can petition to go bankrupt.
2006-08-20 21:35:02 · answer #7 · answered by To Be Free 4 · 1⤊ 0⤋
In addition to the other comments already made above, you will have your credit cards taken away from you and your bank account will be suspended.
2006-08-20 21:47:25 · answer #8 · answered by Lunar_Chick 4 · 0⤊ 0⤋
You never get credit again - you get blacklisted.
2006-08-20 21:28:51 · answer #9 · answered by solo 5 · 0⤊ 1⤋