what are the hard and fast rules of bankruptcy-

[tali122]

what are the hard and fast rules of bankruptcy- i assume if you are employed and a property owner it is more difficult to apply for bankruptcy ?- i thought bankruptcy CLEARED ALL debts but on these threads ive heard about trustees and time scales

[mystress]

Hi tali,

Going through Bankruptcy is much easier(and quicker) than most people imagine.Being a property owner should not make it more difficult.

This link will take you to the Governments own Insolvency site,which can tell you everything(far more than I could!)

http://www.insolvency.gov.uk/pdfs/gtbweb.pdf

I hope this helps.

PS.This talk of Trustees and time scales is NOT Bankruptcy,it is something different.

[Loosehead]

If you apply for bankrupcty when you have some assetts then those assetts can be seized by your creditors and they will also charge you punative fees. Bankruptcy means what it says, ie your debts outweigh your assetts and your ability to pay.

[kempie]

When you become bankrupt all payment to creditors are made through your trustee.

Currently bankrupts are discharged within 12 months, however trustees may still have to deal with some of the assets, which they can do at any time after the discharge although sale of a property has a timescale of 3 years.

[Oneeyedvic]

also bear in mind that neither student loans nor court debts are cleared

[MargeB]

Which is bad news for graduate convicts everywhere..

[JSB]

My understanding is that it is very rare for a property owner not to lose their property in bankruptcy but regardless, prospective bankrupts should always take advice from a money specialist at the Citizens Advice Bureau

[Peahead66]

Whether you would lose a property would depend upon the equity in the property and whether or not anybody you knew could buy your beneficial interest. Bankruptcy clears most debts but not student loans. A good place to look is http://www.debtquestions.co.uk/forum/index.php3 All your questions will be answered there.

Good luck