Can a judge deny you bankruptcy?

athina_2

Hi, I have a friend who is in an IVA at the moment but was borderline bankruptcy recently. She got herself into a bit of a mess by always buying the best of everything, flat screen tv, fancy car, ipods, computers etc, buying a house with a 100% interest only mortage because she was desperate to get on the housing market & overpaid for her house because when she is down she doesn't think & just spends etc. She earns a very good wage (£38k) but her problem is she doesn't know how to cut back.

She has been having a bit of bad spell lately financially. Her IVA has just started but she has had a few unexpected expenses, having to pay back the difference on her car, washing machine broke down & flooded her flat, 2 of her car tyres got a puncture. Talk about bad luck following you around!

I was reading elsewhere that a judge can deny you bankruptcy if they deem you to have got yourself into the mess by spending recklessly. She is hoping for bankruptcy because she really thinks she can't cope and wants to start with a clean slate.

Has anyone ever known anyone to have been denied bankruptcy?

Broken_hearted

Yes they can but i've never know it happen.

Pigeongirl

I knew a man who was denied bankruptcy (by his own petition) because he had assets that the judge said he could cash in and pay off a large chunk of the debts.

As for being denied because of frivolous spending - in my experience judges don't even bother reading half the stuff you write in your statement of affairs so I wouldn't worry.

athina_2

Thanks, that will make her feel so much better

snake666

read about my time in court looking at the posts i made here may be of some help
snake

jesster_2

They can deny you bankruptcy, but my understanding is that that's usually because they reckon you could sort things via either an IVA or an administration order. The latter usually only applies to people with fairly small (but still unmanageable) debts, max around £5,000. And if you've already tried an IVA and failed I suppose it's even less likely that the judge would rule an IVA more appropriate.