bankrutcy worries

add.ley

hi there ive recently been made redundant, and have been advised by one of the debt charities that bankruptcy could be an option, my question is , if i do petition my own bankrutcy and then finally find another job, will i have to start paying the debt back and how much will i have to pay.. ie. will it depend on how much i am earning a month as the trade i am in, jobs are far and few so im looking at a minimum wage jobs at the momment.

darkblue_2

Hi Add.ley,

First of all, can you confirm where you are? Bankruptcy depends on location - Scotland has different procedures from England.

If you were to find a job, you would have to make contributions depending on your income and expenditure. The 'disposable income' would be taken for the benefit of creditors.

In Scotland, there is a way to access bankruptcy called LILA - but if you could confirm where you are, I'll advise further.

add.ley

hi there i live in england

darkblue_2

Thanks. Please see the insolvency service, which covers English bankruptcy cases:
http://www.insolvency.gov.uk/

It has some useful information.

You need to lodge court papers at your local court to declare bankruptcy and there is a cost involved. You may be able to get a reduced cost if you are on benefits.

Find your local court here:
http://www.hmcourts-service.gov.uk/HMCSCourtFinder/

You can also seek the services of a professional Insolvency Practioner.

Before you do take action such as bankruptcy, it's important to explore all the options, so you may want to check with Citizens Advice Bureau to see if there is any way around it without declaring bankruptcy.

CAB:
http://www.citizensadvice.org.uk/