If you are made bankrupt are your CSA arrears wiped also??

plinky1

I have been told that you can become bankrupt over only £750.00.

Is this why CSA send baliffs in instead of making people bankrupt as they know they will never get their money???

3onitsway

No - CSA arrears still stand even after bankruptcy.

ann1971

This is only applicable in England. Under Scottish law they become non collectable

belsh_2

Both the above responses are correct.

I was declared bankrupt in 2004 and still my arrears stand. They would have been wiped out in Scotland.

blimey40

True, it still stands.

In reality, getting money from someone bankrupt is mighty difficult and in majority cases it becomes uncollectible and will therefore will be suspendid.

pd001

blimey40 wrote: »

True, it still stands.

In reality, getting money from someone bankrupt is mighty difficult and in majority cases it becomes uncollectible and will therefore will be suspendid.

Suspended maybe, but not wiped out...not in England anyway.

kaya

what about if the csa get a liability order, would it be wiped out then?

blimey40

Liabity Order actually makes it easier and opens all doors to the CSA.

In regards to the debt, it will be probably be suspendid if you go bankrupt. It won't be written off, but if you don't have the money how can you pay? Same applies in going to prison for 42 days, the debt is still there but if you haven;t got the money, you haven;t got the money. its that simple

belsh_2

It may be difficult to get money from a bankrupt but in most cases, bankruptcy is discharged after only one year. The year of bankruptcy has no effect on the accrual of arrears, you are still liable.The CSA come for you again as soon as you are discharged.

catenorfolk

3onitsway wrote: »

No - CSA arrears still stand even after bankruptcy.

Good job!!!!:T

pd001

Hypothetical scenario..1
You are about to go bankrupt......
You have listed all of your debts..
You have listed your csa debt (which will only be suspended and not wiped out by your bankruptcy)
You are subsequently made bankrupt
You are eventually cleared from your bankruptcy after a period of time but....the csa will still come after you for any money you owe them.


Hypothetical scenario..2
You are about to go bankrupt......
You have listed all of your debts..
You have listed your csa debt (which will only be suspended and not wiped out by your bankruptcy)
You then decide to shove all of your csa debt onto your credit cards (if you can)
You are subsequently made bankrupt
You are eventually cleared from your bankruptcy and hey presto..you don't owe the csa anything.
In fact you don't owe anyone anything at all.

According to some on here, the csa have verbally told people to put their csa debt on a credit card. To my knowledge they have never made this proposal in writing.

However, and it is a big however, I think that the credit card company can try to claw back from you the amount that you have paid to the csa.
In fact, I am sure that I have read a post, on this board, some time ago, that the above took place.

I would think that if you used cash withdrawals from your credit card, in order to pay the csa, then that might be a safer way to go.

This is not a scenario i would get into as if you are not careful, you could still end up oweing the csa

Just thinking out loud...hypothetically of course