Bankruptcy

topcat0000

HI Guys,

I am one year into an IVA and I am struggling to live on such a limited budget. I have no house, no car and essentially no assetts so I cant see why going bankrupt isn't my best option? Surely this means that I dont have massive repayments to make next four years....

Can someone tell me the imediate after effects of bankruptcu and how it will effect me... i.e. when work pays me where will money go? How will my credit rating be effected long term??

THE_LONE_RANGER_4

hi i dont no that much about it only some one i new he was discharged after 9months but has to have surplus money deducted from his salaryfor3 years his only asset was a car which they didnt bother with, in your case it may be the best option not an option id choose but up to the individual ...you should get some good help on this sight

slash40

hi, the official reciever will go through your statement of affairs. any excess above £100 per month, a % will be taken in an ipa (income payments agreement) for 36 months. if no or little excess, none will be taken, although a non tax ipa may be set up. you will not pay tax for the remainder of the tax year, the o/r will claim the amount instead. any bonuses, overtime etc, needs to be reported, although what they will do varies. i earned extra pre xmas, rang up and explained i had done the extra work for xmas etc - the o/r was fine.
if you have no house, assets etc, you have nothing to lose. you will almost certainly be left with more ££ than under an iva.
when you have gone bankrupt, you may immediatly open a new(basic) account as your old will be frozen at least for a while. the co - op is a good bet. you may not obtain credit of more than £500 while b, and your credit rating will be shot for 6 years.
a bankuptcy restriction order can be imposed if it is proves that someone has been reckless, gambled, fraud etc, this can be up to 15 years, but are quite rare.
you may well be discharged in under a year, then you can earn what you want as long as you dont have an ipa.
as the lone ranger advises get expert advice, not always an easy choice, but the best decision for many.

Moneysavingginge

Hi Topcat,

I choose the Bankruptcy option as i didnt see any other way out, I too had no assets, well i had a car that was worth about £1500 but they didnt take that as i needed some form of transport. To answer your questions, The only trouble you may have(apart from the obvious, loans and morgages,etc) is finding a bank account, I still (after being dis-charged April 05) cant get a current account, i have to settle for a basic account. I applied for a small loan just before xmas and still no luck.

As for the repayments goes, I didnt have to pay any money back at all, nor did my friend that also took the bankruptcy option. I was 23k in debt. They did take a £900 Tax rebate which was classed as an asset. If you need to know anymore pls dont hesitate to ask.

Tony