bankruptcy?

Question

what happens when you declear yourself bankrupt?

Answer 1

Before you file, you must take credit counseling course. Very important.

First: Automatic stay - stops all collections, phone calls, harassments, garnishments.

Second: Creditors meeting - you answer questions from a bankruptcy trustee about your assets and liabilities.

Third: Possible reaffirmation agreements if you want to continue to make payments on house, car, furniture or similar items given as security for a debt.

Fourth: Possible complaints to bar discharge or dischargeability - must be within 60 days of creditors meeting unless time extended.

Fifth: Discharge usually 60 + days after creditors meeting unless time is extended.

After you file you must take a financial management course. Very important.

This is highly simplified but accurate as far as it goes.

More information at links on my website

Answer 2

http://www.moneytowers.com/2006/dealing-with-your-debts/bankruptcy/ This link has good info on bankruptcy.

It's not something to be taken lightly, and certain profressions will want to avoid bankrptcy because they will not be able to continue in their jobs if they are declared bankrupt. If you are declared bankrupt, you

- You will lose control of all your assets
- You cannot act as a company director
- You are not permitted to gain over £500 of credit from any person or company without disclosing you are a bankrupt.
- You may not practice as a Chartered Accountant, Lawyer, member of Parliament, Justice of the Peace or a member of the local authority.
- Even after your bankruptcy has been discharged, your credit rating will still be affected for a long period of time.
- Your bankruptcy will be advertised in newspapers.
- Any income you have in excess of that needed for basic living has to be paid to your creditors.

Answer 3

Some financial advisors ( fee charging ) advocate this when other options may be better. Get free advice from you local citizens advice bureau. (CAB)

Also they will explain the effects of going bankrupt on an individual basis. If you become bankrupt you can lose personal possesions that have a resale value. They can be sold to pay some of the debts.

The full details, for your case, can be explained by the CAB.

Answer 4

you have to give up all your cheque books and credit cards when you visit the official reciever, he will ask searcing questions and depending on how much you owe is how long you will be there you will not be able to get a mortgage or loans until you are discharged, even after your discharged its difficult but you never pay back what you owed.

Answer 5

First consider an Individual Voluntary arrangement.
Not as onerous.