bankrupt, was doe's it actually mean.?

Question

i'm in quite a lot of debt, but have been told if i go bankrupt, the creditors can't touch me is that right?

ok thanks for that, but how do i go about it?

Answer 1

Depends - there's more than one kind of bankrupcy, and if it looks like you can pay back a lot of what you owe, your debts won't be just wiped out. A judge decides, you don't.

And not all debt gets wiped out by bankrupcy - it will probably not clear out things like student loans, back taxes, or child support.

If it looks like you won't be able to pay any significant amount of your debt it any reasonable time, they might be wiped out. But before you take this "easy way out", realize that it will stay on your credit report for 7-10 years, and you won't be able to borrow money or have credit cards or get a mortgage for quite awhile.

Answer 2

You need to talk to a debt councillor as soon as possible. In the UK there are alternatives to bankruptcy. It is not your only solution or your best solution most of the time. If you owed me money, I'd favour having you declared bankrupt but it sounds as though you still have options before your creditors make the first move.

Answer 3

If you go bankrupt you will have no debt remaining at all, with the exception of any outstanding CSA monies. The downside is, anything you have of any saleable value will be taken, your bank account will be closed down and you will have no lines of credit available to you, anywhere for at least a year; almost certainly longer. Think very hard about this, the CAB is by far the best thing you could do right now, they will help you alot.

Answer 4

it basically means you do not have enough money to pay your debts. Once you are made bankrupt your creditors can no longer chase you for your debts and once you are discharged from bankruptcy your debts are wiped and the slate is clean so to speak.

Answer 5

Yes. It means the law has recognised your inability to deal with your debts and makes sure no creditors can demand money from you. But be careful, bankruptcy presents other problems for years to come, even when the bankruptcy is discharged.

Answer 6

Yes but you will have no credit for some time. Many people say 7 years but it is actually more like 4-5 years when companies will start to trust you with credit again.

Make sure it is something you really want to do.

If you plan on buying a house or car best to do it before you file.

Answer 7

i'm not 100% sure, because i have never been bankrupt, but i was told that if you have a large amount of debt, not all of it will be cleared. a percentage of it will be but you will eventually have to pay the remaining amount back. and plus no one will want to give you money, and your credit rating will be dead.

Answer 8

yes this is right. bankruptcy is you legally saying i dont have the money and you cant do anything about it

Answer 9

yes