Bankruptcy Question

redd_2

I've been thinking about making myself bankrupt for a while now, and have recently been sent a letter from one of my creditors saying that they are considering making me bankrupt.

If they decided to make me bankrupt, it would save me having to fork out the fees myself, but I'm wondering if there's a difference between being made BR, and making yourself BR?

There will obviously be times in the future where I'll need to declare that I'm either bankrupt, or have been made bankrupt in the past, and I'm wondering if things would be worse for me if I was made BR by someone else, or if bankruptcy is bankruptcy, regardless of whether I bought it on myself, or had it forced on me by a creditor?

Also, I'm going to be moving into rented accommodation pretty soon, which is rented through an agency. During the application process, they said they'd do a credit check on me (pretty standard for all agencies as far as I can tell) I told them I had bad credit history, and they said that as long as I had no CCJ's or had ever been made bankrupt, I would be fine. As I didn't have either, they've given me a 12 month tenancy. I'm now worried though, that if I'm made bankrupt during my tenancy, they'll kick me out. And considering that all agencies seem to check if your BR, I might have trouble finding somewhere else. If anyone else has had a similar problem, I'd appreciate any advice.

I'm in such a mess right now.

k2nga

Hi Redd,

I dont thing how you are BR makes a difference. It costs more for a company to make you bankrupt and i doubt they would do that very quickly i would think its a scare tactic to make you pay up.

As for renting you might be better off being up front but like has been said on here today that even though BR might appear in your tenancy agreement as long as the LL is getting his cash i doubt they wil be worried.

If you tell them up front be ready for them to ask for either 6 months rent up front or ask for a guarantor.

JCS1

Hi,

No difference between making yourself bankrupt or a creditor doing it - other than when someone makes you BR you'll get an office interview.

Most creditors do threaten this, but not many actually see their threats through - it costs them approx £1,500 in fees to do it. The few exceptions are HMRC, Council and AMEX.

Please see one of the debt charities to discuss your options further.

HTH

peachyprice

Hi Redd, welcome to the forum

Creditors often threaten bankruptcy but unless it's HMRC, council tax or Ames, it's highly unlikely they will. it costs them £1500 and there's a pretty good chance they'll get nothing at the end of it, so don't pin your hopes on this.

It makes no difference to your future whether you did it yourself or someone else made you bankrupt.

Lastly, once you're in and ghave proved to be a reliable tenant it's highly unlikely they'll kick you out. You don't have to tell them unless there's a bankruptcy clause in your tenancy agreement, and som OR's dont tell landlords. even clauses onl;y say the 'may' and the tenancy.

Any more questions just ask, there'll always be someone here to help.

Must type faster

debt_doctor

Hi,

First thing is that it makes no difference at all whether you petition your own BR or if someone makes you BR. I would have to say that someone making you BR when you do not own a home is almost nil.

If you are a private tenant then a 'BR clause' in your tenancy is virtually worthless as your land lord can get you out with 2 months notice any time he wants without any reason, so a BR clause gives nothing extra to the powers he already has.

I have never ever heard of anyone being evicted purely because they are BR.

Hope that helps

DD

tigerfeet2006

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