Bankruptcy - what happens if you get a job and start earning ?

skyrat

My girlfriend is considering declaring herself as bankrupt because she has £10,000 worth of debt and is unable to go back to work.

She is unable to go back to work because she has just had a baby and due to high child care costs cannot afford to put the baby into care whilst working.

I am concerned about her declaring herself as bankrupt.

I have heard rumours that if she was to get a job then her earnings would go to paying off her creditors... is this true ?

If so how much would they take out of her earnings and how long would they do this for ?

She has been to the citizens advice burea who have told her there is no option other than for her to declare herself as bankrupt.

I am also concerned in what ways this could affect me.

Another problem is that we were seriously considering emigrating to Australia.

However, I am concerned that if she declared herself bankrupt she would not be able to emigrate - can anyone confirm this and supply more details ?

She already has family living in Australia and her remaining family (parents, grandparents, sister and baby) are also considering of emigrating to Australia as well.

She used to work as a vetinary nurse, I work as an Electronic Design Engineer and have a BEng Honours Degree.

Any advice would be greatly appreciated,

...a very concerned and worried boyfriend...

all_hours

Has she looked into getting tax credits to help cover the childcare costs?

http://www.entitledto.co.uk/

Broken_hearted

£10,000 isn't that much debt to be in. I know it might feel that way but it can be sorted. Surely if you are a family your wage will be topped up with benefits.

Emmzi

Yes, some of her earnings would pay off creditors. Surely that is only right?

Emigration website here http://www.overseas-emigration.co.uk/immigration-faq/task,display/catid,94/page,1/#FAQ408 suggests re: Bankruptcy

Comments:Being declared bankrupt is not a criminal offence. The only time this will affect an Australian visa application is if it is for a Business Visa Category.

skyrat

all_hours wrote:

Has she looked into getting tax credits to help cover the childcare costs?

http://www.entitledto.co.uk/

Yes she's gettting tax credits... though Im not sure what and how much.

southernscouser

Hello mate. Post a full SOA (details can be found here) then we will be able to help you better.

halloweenqueen_2

Can you help her to pay off the £10,000, rather than it impact on your life together? I personally wouldn't go bankrupt for £10,000. Good luck to you, hope it works out.

Panda1rimshot

Hi everyone Iam a newbie on here, and my question is. I am thinking of going bankrupt, but is it true that they come and take everything that i own personaly? EG: furniture, clothes, jewllery, anything they can get there hands on? Its all very distressing, but i dont wont to go ahead with it all and lose absolutely everything. surely they must leave you some things to survive with?
thanks for any replies

Gary

fermi

Panda1rimshot wrote: »

Hi everyone Iam a newbie on here, and my question is. I am thinking of going bankrupt, but is it true that they come and take everything that i own personaly? EG: furniture, clothes, jewllery, anything they can get there hands on?

No. Not true normally.

Household items that you need for day to day living are exempt from being claimed by the Official Receiver by law (i.e. the furniture, clothes etc....).

Other luxury items are normally only claimed if they can be sold at auction and make something for your estate. Given the costs that rules most other things out as well.

In practice 99% of items in your home are not even worth declaring as assets since that really means items of excess value.

Panda1rimshot wrote: »

surely they must leave you some things to survive with?

They do, and HAVE to by law.

This forum has a bankruptcy sub forum here:

Link: Bankruptcy & Living With It

THE_LONE_RANGER_4

i never went bankrupt my debt was 17k ish and i wouldnt go bankrupt for that amount , but two associates of mine did one for 67k one for 46k ,
the 46k one was a tennant , they took nothing off him apart from the bank account , he wasnt allowed to run a business he kept his catr etc etc and he was discharged after 1 1/2 years but i think he still pays 2p in the pound to his creditors for up to 4-5 years which to be fair he is now riunning his own business again and raking it in , the other chap owned his own house he kept it from what i have been told this was becouse there was no equity in it , but i have since learned it was his wife who went bankrupt not the husband the house was all in his name or half of it was so thats why it wasnt sold but when or if it is the creditors have to be paid down the line they were discharged after 2 1/2 years , i must admit all seem to be doing well now 3 years after .
the chap who went bankrupt for 46k said it was a bad move as it was all unsecured debt and he could have over the 2 years got some reduced payment offers some of the small ones written off, changed his number etc and ignored the dcas and ignored the rest until he had the money to pay which he clearly has now but going bankrupt for 10k is i think rather silly

intranix

Fancy getting pregnant when facing financial hardship.