What exactly will bankruptcy mean ?

FlofieGirl

This is my 3rd post and thanks for the advice so far, it has helped lots.

As I have posted before, we have decided that our only way out of our financial disaster is to declare ourselves bankrupt - £100,000 ish owing !!!

I have read some other post regarding bankruptcy and some other webpages on the subject, but want to be absolutely sure I understand it all before going ahead.When we actually go to court and do the biz, how will things progress ?

My husband manages a restaurant which obviously involves handling money. There is a good chance he may lose this job. If he gets another job, but is payed less or can't get a job straight away, how will this affect things ? We have no assets at all for the OR to take, so don't see how the creditors will get any money at all. How does this work ? I know that you pay into a fund (which I suppose is spilt between your creditors), but how much are you allowed to live on (we have a child).

We think that we would probably be discharged after 1 year, what happens after this ?

I know that bankruptcy stay on your record for many years after you are discharged, but does it then disappear for you to completely start afresh ?

These questions probably sound really naive, but I need to fully understand how it all works, so please post if you can help.....

Many thanks. x

loobyloo1980

I think you go through a statement of income/expenditure with OR and they will discuss how much money you get to keep for yourself. If you have no assets and your income is too low to make payments, then basically you pay nothing. If you have a higher income and can afford to pay something, then you pay something. They allow expenses for kids and birthdays and stuff, they don't expect you to live on nothing, but they don't allow for extravagence either. After you have been discharged, the slate is effectively clean. However, it stays on file for 6 years, but there are some instances where it may never be clear as you may always be asked for some purposes whether you have previously been declared bankrupt. hope that helps, although I'm no expert. My in-laws went bankrupt a couple of years ago and that is the only experience I have of it. They had no assets and no income either and paid nothing towards the bankruptcy other than the court fee.

lynzpower

i dont really know much about bankrupcy at all but just wanted to send you a hug x

elantan

dont know much about bankrupcy either but also wanted to send you a hug... try speaking to mike st helens he's really helpful as is bluezone ..both have been in your situation ( i think ) and both are very helpful friendly people who i'm sure if you asked nicely will tell you what you need to know ...good luck (sorry mike and bluezone if i've offended)

FlofieGirl

Thanks Elantan, will post to them.

Mike_St_Helens

Hi there, Im just on my way to work and woll pm you this evening... look at the loody time, gonna be late.....

Mike x

CLAPTON

just a few things

I dont see any reason why your OH should lose his job unless there is a specific clause in it about bankruptcy

You may have to pay some money to your creditors for a three year period but this will take into account your income and your essential living costs.

Your credit record will hold details of your bankruptcy for six years during which it will be very difficult to get any credit but you wont be wanting any will you.
It will in general be possible to get a mortgage although you will probably have to pay a higher interest rate that the main high street lenders and they may well look for a bigger deposit than normal.

If you are in rented property your landlord will be informed about your bankruptcy..check your agreement and see if it says anything about bankruptcy.

Even after discharge or after the six years, potential creditors may still ask you if you have ever been make bankrupt.

Mike_St_Helens

Clapton is spot on !! any q's... fire away and ill try and help !

elantan

sorry just posted on the other thread thanks mike

Let_Robinson_Sing

Your OH will lose his job at the place he works at and will not be allowed to be a manager of a resuraunt or a business again.

Thats all i know sadly

Goldielocks

Let_Robinson_Sing wrote:

Your OH will lose his job at the place he works at and will not be allowed to be a manager of a resuraunt or a business again.

Thats all i know sadly

That just is not true. I don't believe you can fire somebody just for being bankrupt, unless there is a specific clause in the contract stating this.

There are some particular professions where being a bankrupt does cause a problem i.e. Lawyer, Accountant, Justice of the Peace etc - a bankrupt is not allowed to practice in these professions. Also a bankrupt is not allowed to act as a Company Director.

I can see no reason why a person who is bankrupt cannot manage a restaurant!!!!

G x