If the bank makes you bankrupt,do you still have to pay for it and would all other debts be included.?

Question

sorry,should have made it clear,do you still have to pay the fees if some else makes you bankrupt.By the way I asked the question for my sister not me.thanks

Answer 1

In the UK, the person/company that petitions for the person's bankruptcy pays those fees (can be £1,500).

The Official Receiver (in the UK) takes on the case and will realise any eligible assets. If, say, your sister has equity in a property she owns, it is likely a private firm will take on the bankruptcy and either sell their interest in the property or repossess the house.

On the positive side, bankruptcies are lasting between 6 and 9 months at the moment (1 year is the maximum)

Hope that helps

Answer 2

You need to avoid being made Bankrupt if at all possible - go to Citizens Advise and ask about alternatives

If you really are made Bankrupt everyone you owe money too will want their money back.

All your property will be taken and sold off to pay the debts - you MAY be able to keep your house, but even so chances are they will register a 'charge' against it, especially if the house is worth more that the outstanding mortgage. This means that if you sell the house they can take the money you get for it.

For the next 6 years, anything you earn will be used to pay off your debts. You won't be able to get Credit, an Overdraft or a Mortgage. No one will be willing to lend you anything. Your life will be based on 'cash in hand'. It will be Illegal for you to attempt to borrow money.

You will have a Bank Account but no Debit Card or Chequebook. The Bank Account will be administered by the Courts to distribute your wages amongst the people you owe.

After 6 years, if you haven't paid it all back, you can apply to be 'discharged' and anything left owing will be written off.

Needless to say, the major Banks will never want to deal with you again - you will find Credit/Mortgage difficult to get and end up paying higher rates of Interest on any you do get.

Answer 3

pay for what ?the money you owe the bank or all your other debts.all your debts will be cleared but i thought you had to pay a fee but that might be if you declare yourself bankrupt,but if the bank is declaring you bankrupt not sure ,what ever not a very good road to go down ,try seek some help from citizens advice maybe they will be able to help you good luck no what its like to be broke.

Answer 4

jeez - some people are so up a pole with their answers so far.

its not 6 years, its 1. it used to be 3 so where 6 came from i do not know.

however to the nub.

if the bank make her bankrupt they pay the fees. however are they likely to make her bankrupt knowing they will lose out, i think not. unless they know she is sitting on a valuable house, or art collection or something that the banruptcy trustee will sell and give them their money from.

Answer 5

The bank can't make you bankrupt.

You file bankruptcy, you pay the costs.
Not all debts are included in bankruptcy, some debts you just have to pay no matter what. Government insured student loans, government fines or penalties, or debts associated with child support or alimony are not dischargeable.

Answer 6

Being bankrupt means all debts are written off. You start again clean.

Answer 7

it will be included in your debts, but you will get a caution warning on your credit file and will not be able to get credit for 6 years

Answer 8

I don't know if you have to pay for it but they would take away your car, household items, depending on how much debt you are in.

Answer 9

If you are made Bankrupt --that's it --end of story -but any assets you have will be seized -----