WHO can make you bankrupt?

SamanthaA

Apologies if this is somewhere else, I couldn`t find it.

Luckily the advice is not for me, but I have a close female friend with 4 kids, who appears to have her head in the sand.

I have not discussed the amounts of her debts with her, but I understand that she is paying token amounts to various CC and intrest only on the mortgage. One CC has gone to collection agency. No offical debt plan in place, just letters sent requesting reduced payments. Most said 6mths, which is ending soon, if not already.

My question is simply which companies can make you go bankrupt, if any?

I expect the mortgage company can, and possibly the debt collection agency, but who else?

ILW

n theory, anyone you owe money to can file to make you bankrupt.
Bit pointless if no assets though.

debt_doctor

Hi,
Anyone you owe more than £750 can petition for your bankruptcy - but take note of the post above.
In practice, thanks mainly to the very beefed up OFT DCG (I never thought I would congratulate the OFT - but thankyou!) those with a consumer credit licence are incredibly unlikely to petition BR even with equity so long as the debtor co operates, engages in the process and keeps to an arrangement based upon the common financial statement (CFS).
It is those who do not keep to arrangements, ignore their debt and have assets that fall prey to Lowells and the like.

DD

SamanthaA

They have assets, as much of the spending appears to have been on un necessaries, until her partner left.

But he left approx 18mths ago, so not sure if there is value in the stuff - think there was a nice camera, phone, laptops and poss a motorbike for an elder child. There is a car too.

Any way, I will try & pass on the info & hope she stop burying her head.....

PippaGirl_2

When we talk about assets that an OR would be interested in we are not talking about household things such as most you mention, it is equity in property, expensive jewellery, savings etc. though they do take vehicles if not exempt and they are worth a certain amount. They wouldn't take a child's bike as I assume it belongs to the child.

Lots of people pay interest only on a mortgage for considerable periods of time and still manage in the end. Your friend may well have lots of do-able options and I would encourage them to seek specialist debt advice, the CAB provide this for free.

SamanthaA

PippaGirl wrote: »

When we talk about assets that an OR would be interested in we are not talking about household things such as most you mention, it is equity in property, expensive jewellery, savings etc. though they do take vehicles if not exempt and they are worth a certain amount. They wouldn't take a child's bike as I assume it belongs to the child.

Thanks I will pass this on, but its a motorbike, not a scooter nor a childs bike. And I`m darn sure the child didn`t pay for it, tho he was supposed to pay them back!

PippaGirl_2

But the motorbike belongs to the child surely? The OR doesn't go around taking everybody's presents off them purely because they were bought by the BR previous to going BR. I did realise you meant motorbike and was going on the premise it had been a present to the child so belonged to the child.