Bankruptcy

[tamborine]

Is it true that you can run up �25k or more debt, declare yourself bankrupt, and the debt is completely written off?

[tamborine]

thanx goodbyegirl...surely you would lose any assets you had, like a house/car etc. before you could declare yourself bankrupt or can you keep them?

[Buenchico]

Yes, but you lose almost all of your possessions including (if you own your house) your home. You also lose your bank account and will find it extremely hard to get another one. Your credit rating will be virtually non-existent for many years to come. There's also a bar to some forms of employment (e.g. working as a financial adviser) if you're bankrupt.

For much more information about the implications of bankruptcy, see the relevant links from this post I provided yesterday:
http://www.theanswerbank.co.uk/Business-and-Fi nance/Personal-Finance/Question777368.html

Chris

[tamborine]

ta Chris, how about graduates who've accumulated huge debts thru uni. If they declare bankruptcy could that relieve them of that debt, and would they be able to be employed?

[Ice.Maiden]

I know someone that ran up huge debts and then declared herself bankrupt. As Chris said, she coldn't get a new bank account, credit or anything, but she changed her name by deed poll, had her wages go into the PO or somewhere and literally started again!

[ELVIS68]

Surely by changing your name by deed poll you need to declare things like being bankrupt?

[Ice.Maiden]

No, she didn't Elvis. In fact, she even took out a mortgage not so long afterwards. Still in the place 8 years on.

[tamborine]

it seems flawed to me, Ice. I sympathise with graduates running with massive loans offered but not some unscrupulous indiviuals who hide their assets (off shore or in OHs name).

I would have thought that when a bankrupt acquired more assets their debt could be realised.....seems not.

[Ice.Maiden]

Agree with you tamb, but if there's a way to be had round these things, you can guarantee that people find it.
The person I was speaking of has no scruples about what she did. She saw it as her only way out, because bailiffs were ready to knock at the door, and as the letters poured in, she'd just throw them in the bin. Can't remember how much it cost her to declare the bankrupcy, but she thought it was money well spent, along with the name change. She then got married and changed her name AGAIN, so feels free of the burden.

[tamborine]

how can you pay for bankruptcy if you're broke?

[Ice.Maiden]

Apparently you have to - �200 or something. That's when YOU declare yourself bankrupt . No idea how it works. i've never been in that unfortunate position

[ELVIS68]

Anyone care to lend me �200

I`ll change my name to anything you wish lol

[Ice.Maiden]

Lol - the name change is extra Elvis. The �200 was just a rough estimate of what it cost this person to go to court and declare herself bankrupt. She did tell me, but I've forgotten. The point is, this is just an average person we're speaking of here. Those of a criminal mind get away with much more.

[tamborine]

If the Law make bankruptcy so cheap & easy they are at fault for causing this criminology. It's almost encouraging a person to defraud!

Galling for the person who is owed lots. Chucks the gas bill!

[Ice.Maiden]

Galling for those of us who pay our way as well Tamb. there are lots of instances where some seem to get out of things and others don't. One example, is we know someone who was faced with crippling death duties to pay. Another person in the same boat somehow managed to get away with paying a fraction of what the first one had to.

[tamborine]

I must be missing something - will study Chris' URL more. Heard of a friend's bf convicted of 'misappopriation' of �2ml, goes bankrupt & free? Can't be right?

nite - will look in 2moro

[Ice.Maiden]

It's quite possible that someone can get away with the type of thing you've said, or end up with a measley fine of about �1000 or something. It's like the law which allows someone to drive carelessly and kill someone by accident. Sometimes these people are uninsured or/and have no valid licences, yet still get off with a rap on the knuckles because of how the laws are written.
Yes - listen to Chris. He's brilliant at stuff like this.
Night for now then. x

[Ice.Maiden]

Oh - and must just add that this person COULD still get credit, so long as it wasn't over �500 or something. It amazes me.

[themas]

Bankruptcy does not wipe out some types of debt. These include student loans, criminal Court fines, and any debt incurred through fraud.

[saintpeter48]

i was declared bankrupt last august, im self employed and i suffered a heart attack, couldn't work for months and months and found it very difficult to get any help in terms of benefits, i ran up huge debts just trying to live. a big burden was lifted after the bankruptcy and am now trading again and slowly getting back to some form of normality. the benefit system in this country stinks, it seems to help the people who haven't paid in and not people like me who've work all my life, im 61 btw.