what are the pros and cons
2007-08-21 20:59:38 · 8 answers · asked by morry 1 in Business & Finance ➔ Personal Finance
After going to county court you will not be liable for repayment of any debts but you will lose your bank and saving accounts .Even after discharge you cannot get a debit card only a basic bank account for about a year if you are lucky.You will find financial institutions treat you like a criminal. But you will have peace of mind.
2007-08-23 09:24:52 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You have to apply to the court for an application to go bankrupt. Also open a new bank account if you owe money to the one your in.The pros are being debt free,no stress,happy again and to be honest there isnt really any cons,after 6 months you are not classed as being bankrupt anymore and can start getting credit again(not the best move tho if you have been in debt) also if your a home owner then your home can be at risk so there is different options like debt management plans, with that you pay one low monthly sum and its distributed between all your creditors(CCCS is a good debt management comp),if your renting then bankruptcy would be the better move....
2007-08-22 04:14:07 · answer #2 · answered by The chandlers 2 · 0⤊ 0⤋
discovering a side to yourself you never knew existed.
seriously, it is not the fun ride you think it might be. Although it does relieve the stress and with these new 1 year jobbies it doesnt last that long.
it does destroy your credit hisory, but it is possible to build it back up. It takes a few years, but here we are 3 years after mine ended and I have 3 credit cards (albeit with lower than normal credit limits) and have just taken out a loan to pay or my wedding. OK my decent salary helps to get these things, but so does religiously paying off my £200 limit paid up front credit card every month for the last 2 years.
something I was told, that is totally illegal and would put you in trouble if caught. -
Someone applied for new credit card and went bankrupt day before it arrived, so it didnt appear on credit report. by not mentioning it to the Official Receiver (the illegal bit of this story) he had a credit card. He kept the spend on it under the £250 limit at which you have to tell the lender you are a bankrupt and paid it off without fail. At the end of bankruptcy he already had a credit history.
I dont know if I believe this story however. The timing would have to be lucky beyond belief and his credit report would still have the bankruptcy on it. The c/card lender would see the updated report and know, cancellin the card. but it makes a nice story. The morale is you can rebuild your credit history following bankruptcy, but I would leave it until AFTER your discharge, not before.
2007-08-22 05:19:46 · answer #3 · answered by alatoruk 5 · 0⤊ 0⤋
er I assume you just mean bankrupt and not filing for bankruptcy?
The pros: No money to worry about, unemployment check if you qualify.
Cons: No income-you only get help if you have a legitimate reason-disability, very child, etc. no legitimate reason=no money.
You have no money to buy things.
Credit score will get shot because of no money forcing you to pay with credit=no way to pay credit back=low credit score+debt+high interest=trouble
If you're talking about filing for bankruptcy, then your talking about a whole nother story, basically the cons of it outweigh the pros like ten to one.
Edit: Also what the other people don't seem to realize is that bankruptcy laws recently changed-so it's a LOT harder to get your debts discharged. Most likely they'll just set up a 3-5 year plan for you in order to pay it all back.
2007-08-22 04:57:23 · answer #4 · answered by mirrorinthesky 3 · 0⤊ 0⤋
if you declare yourself bankrupt it could affect any future job applications or sometimes getting new accomodation, especially if you want to go through a private landlord.
You will lose everything even your bank account, or the bank will downgrade your account so that you only get a cash card.
plus you need about £500.00 to apply for the bankruptcy.
2007-08-25 09:41:09 · answer #5 · answered by Rebz 5 · 0⤊ 0⤋
Con:If you declare yourself bankrupt then you have it on your permanent records
Pro: but if you declare yourself bankrupt then the government will give you money or assist you financially.
2007-08-22 04:13:47 · answer #6 · answered by starrynight 4 · 0⤊ 2⤋
one thing i have learn about filing or thinking going bamnkrupt is early one waste more money and hire a lawyer!!!!
2007-08-25 22:00:47 · answer #7 · answered by mister ed 7 · 0⤊ 0⤋
Having no money maybe !
2007-08-22 04:06:29 · answer #8 · answered by Anonymous · 0⤊ 0⤋