Loan to cancel bankruptcy

Ravenstar11

I went bankrupt in April 2005 for a total debt of less then £10,000. Since then I've broken up with my partner (who also went bankrupt, but for £30,000), will be moving back home, and getting a full time job. Does anyone know where I might be able to go, or a reputable company that will possibly lend me the money so I can cancel the bankruptcy?

ms_london

Is it possible to cancel and bankcrupcy then? Were you getting the loan in the hope of clearing your debt? Can you not do this with your wages, or continue paying the OR the monthly amount? (assuming you have been).

I am not au fait with bankcrupcy, so I do apologise if I'm not making much sense. I just didnt think it would be possible to "cancel" it just like that..

ms_london

Ravenstar11 wrote:

I've spoken to the OR and yes it is possible - although would mean another day in court. I know I need to phone up the lenders and ask them if they would accept this - possibly a monthly payment - however if they will only accept a 'Full and Final Settlement' payment, I would require a loan.

I know getting in debt to cancel bankruptcy seems completely idiotic, but I want to train up in a sector that I can't if bankrupt - and I could afford to pay it off in a couple of years now that I'm working and not having to pay to run a house.

Didnt you try the "consolidation route" before bankcrupcy? As in, surely if more credit was available to you then to consolidate or offer a Full and Final settlement, you wouldnt have needed to gone down the bankcrupcy route? It does seem stupid, but like you say if it will affect your choice of career, I can sort of understand.

Will you be paying anything towards, I assume, your parents for your "keep". I think it is unfair to not offer them anything... Perhaps you should re-post your SOA..

Let us know how you get on.

fast_track

It is possible to get your bankruptcy anulled - visit http://www.insolvency.gov.uk/pdfs/guidanceleafletspdf/Canmybankruptcybecancelled.pdf

However, if you speak to your trustee you may find that you are about to be discharged soon anyway

ms_london

Ravenstar11 wrote:

Yes I did try the consolidation route before hand, however I was in a 'relationship' and unable to work, and running a house and didn't have any spare money at all.

Yes I am also paying enough money to cover my share of the rent, bills, food etc to my parents. I wouldn't dream of living with them and not paying them anything.

So do you think your credit rating would be good enough to get a loan? Obviously if you are, it would be wise to shop around for the best APR, but you probably know that already (I didnt when I took out my loans, doh!!)..

johannamse

Unless you own a house, or could get someone to guarantee the loan, I don't think you will get a loan from a normal route. I know there are subprime lenders, but I am pretty sure they only deal with secured loans (ie: mortgage). Sorry.

What line of work is it that you want to do, that doesn't accept bankrupts? Are you absolutely sure? Check properly, don't just rely on a mate.

GlebeCS

Under current bankruptcy rules (assuming this is your first bankruptcy) you will be automatically discharged in April 2006, I personally would wait until then and save yourself another debt.
Even if you do satisfy your lenders and get yourself discharged your credit rating will suffer for a while yet, the credit reference agencies keep a bankruptcy on your file for 7 years, unless you pay well over the odds for any credit you are probably looking at 2 years or so after discharge before you will get loans/credit cards etc

Addicted2Chocolate

I am an insolvency examiner at the insolvency service.
Remember if you obtain credit whilst undischarged of over £500 you must disclose your status as a bankrupt to the lendor. Failure to do so is a criminal offence.
If you want an annulment on grounds on Payment in Full you must pay (or secure) all of your bankruptcy creditors in full, plus the Official Receivers costs which can be £1625 to £2000 on average. The Official Receiver would tell you whjat the costs are in your case. The annulment application does to court, you must serve a copy of the application on the Official Receiver (and your Trustee if different). The Official Receiver then files a Report at the court 21 days before the hearing, stating what your debts and assets at time of bankruptcy were, which creditors have been paid, (according to the creditors) and whether the costs and expenses of proceeding have been paid. If annullment is granted by the court the effect is as if you have not been bankrupt, so it can be removed from your credit file. It is not the same as just waiting for discharge, as some other posters have suggested, as the bankruptcy order stays on your credit file after discharge.
But if on a job application form you are asked have you ever been declared bankrupt? then your answer would have to be Yes, but you could state it has been annulled. If I were you I would get advice from a professional organisation, from whichever your intended profession is.

fatbelly

A2C might confirm or deny this ... but I believe that for a 'normal' bankruptcy, the bankrupt is discharged within one year and that the norm is eight or nine months. So you are likely to be discharged in the next few weeks. I don't see any advantage to you in trying to disturb that process, unless you're desperate to get into debt again as soon as possible.

Edit - just noticed the 'job' angle. That is a valid reason. But this is all a bit late in the day. Sorry if this sounds a bit harsh but can't you train for something that doesn't exclude bankrupts?

Xbigman

You need to ask the OR just how much you need tp pay off. As already mentioned the OR has a fee but when I went bankrupt there was a lot of padding by my creditors and I ended up owing double what I thought. IE a 10k secured loan ended up as a 22k debt.
You might find you can't afford it anyway.
Regards




X

ffs

Although too late for you, it is possibly relevant to others that the main advantage of an IVA is that it does allow you to work in professions where you would be barred if declared bankrupt.