Should friend go bankrupt?

Teabag_3

Hi just need some advice, a desparate friend in tears and ill due to £50k debts, nothing to show for it as all interest, single & lives at parents house.I think bankrupcy only option but i have no idea how it all works? Will they take his parents house etc?(his parents currently do not know any of this) He has been avoiding calls/letters for months now, i am afraid he will do something silly if dont take action, but i do not know where to start? Please help

Pobby

Hi Teabag,perhaps you could post a few more details.As to the question of taking the parents house I can`t see that would happen.As they know nothing of the debt then clearly they have not been party to any credit agreement so therefore have no liability.

CLAPTON

persuade him to come and post on the board directly...he can then tell us the details of his debts and situation and will help him take control and responsibility for the matter.

Teabag_3

hi thanks for replies. Im not sure of all the details i know that a lot of them are credit cards and there is also one of those consolidate' loans he is paying off.Is the citizens advice centre worth a visit? As he doesnt really own anything of value,(he has a car worth £300, a laptop etc) would baliffs still go to his parents home? id appreciate any advice so i can pass it on to him, he is really depressed and i think he has shut down a lot-so the more info i can give him personally the better..the problem is i have no idea about this situation and what steps to take

Alleycat

It all depends on what his current financial situation is barring the debt repayments. I assume as he lives with his parents, that there will be minimal outgoings for things such as food, rent, bills etc?

I personally feel that going bankrupt should be the last option to consider. The official receiver wouldn't be able to consider his parents property or their goods as assets as they do not belong to him, though his laptop and car may be fair game.

TRAVELMAN_2

Hi!

Firstly if your friend outgoings are the same as/exceed his/her income then YES-a good idea. The official receiver is not interested in cars/laptops ulness they are worth a lot of money. The parents house will not be touched. Your friends name would be published in the London Gazette & the local paper ONCE in a tiny notice that most people will not see (ulness they are sad enough to read those sections!).

My other 1/2-young & daft got herself in to a load of trouble (part her fault & part banks fault in 'offering' endless services-she's not from the UK), she had no assets, extra income, was living in a shared house. It was making her ill. Filled in the forms, did not even have to see a judge & £200 of the fee (think ints £325/£400?!) was remitted as she was on a low income. 1 hour meeting at the receivers office (she only had to go in as the official receiver was being assesed by his boss-otherwise it would have been a phone interview)-the receiver was very nice....6 months down the line she was discharged (new rules mean most straightforward cases are discharged-ie no loniger bankrupt-in 1 year-in practice many are discharged in 3 - 6 months!)-no more contact from him after the initial meeting!

Check out http://www.debtquestions.co.uk/forum/index.php3 , the guy is an insolvency expert for more advice. Post all circumstances on here for the best advice.

I know many on here can't take the BR route (as they have houses, kids, etc...)BUT if you have no assets, live at home, etc its the best way in my opinion. I also greatly respect the other MSER'S that are paying it off slowly but surely using the MSE methods & I have a great deal of respect for them too.

But, it's ONLY MONEY & not worth making yourself ill about so I'd get your friend to post on the website given for free advice.

I know Bankruptcy is an emotive topic as many people have 'cut back hard' to clear their debts ( & I've been ripped to pieces on here before to suggest it's a good thing!) BUT think for your friend it's a good option. In 6 months time he/she may be FREE of debt & can start again. But don't take my word for it...ask on the site I gave-good luck!

THE_LONE_RANGER_4

50k In Debt Salary Not Able To Clear The Debt And Still Lives At Home , I And I Think Cccs Would Suggest Going Bankrupt And A Case Of Lesson Should Have Been Learned Id Assist In Getting The Ball Rolling For Your Friend

Addicted2Chocolate

a car is always dealt with by the Official Receiver (OR), irrespective of value. If it is essential for work (eg used for travel to and from, pubic transport not an option) or self employment (eg van for builder) then he can claim it as exempt. If not a grounds for exemption then a third party (friend or family) may make offer to purchase the vehicle from OR. they would accept less than value to avoid incurring costs of agents & auction. The 3rd party can allow the bankrupt to then keep the vehicle.
If not third party offer then likely agents will be instructed to collect and sell or scrap. Reason for action with vehicles is that the OR is personally liable for anything that happens as result of motor vehicle. So the OR will incurr a debit balance (pay money out of the estate to make it more 'overdrawn') to eal with a motor vehicle.
The OP's intentions are good but the friend will have to take action himself. Maybe start by reading 'the guide to bankruptcy' available from https://www.insolvency.gov.uk