bankruptcy what happens to the debt?

george_david

Can anyone tell me what happens to the debts when you go bankrupt?

• does the creditor get paid by some kind of insurance
• if not how long can they still come after the debt after going bankrupt
• if i was to win/receive money/pass away and leave my life insurance to my kids can they come after the money years after i go bankrupt
• is it worth going bankrupt? i have no assets lost my house and now left with £38,000 worth of debt, I'm on benefits and have no chance of working.

thank you

rossireps

george_david wrote: »

Can anyone tell me what happens to the debts when you go bankrupt?

• does the creditor get paid by some kind of insurance
• if not how long can they still come after the debt after going bankrupt
• if i was to win/receive money/pass away and leave my life insurance to my kids can they come after the money years after i go bankrupt
• is it worth going bankrupt? i have no assets lost my house and now left with £38,000 worth of debt, I'm on benefits and have no chance of working.

thank you

as far as i know if you have no money/assetts after br ,creditors get nothing
after br they are usually notified within about 8 weeks after that i had,no one chasing.
if you have no assetts etc that it can certainly be worth it. I had no assetts and dont work and was best thing i ever did

JCS1

george_david wrote: »

Can anyone tell me what happens to the debts when you go bankrupt?

• does the creditor get paid by some kind of insurance
• if not how long can they still come after the debt after going bankrupt
• if i was to win/receive money/pass away and leave my life insurance to my kids can they come after the money years after i go bankrupt
• is it worth going bankrupt? i have no assets lost my house and now left with £38,000 worth of debt, I'm on benefits and have no chance of working.

thank you

• Only if they have such insurance in place
• Once you are made bankrupt it's immediate and covers all unsecured debts
• Life Assurance is dealt with by the OR and you have options to consider. It also depends on the timing of such events in relation to bankruptcy/discharge
• And take advice from one or more of the debt charities to help decide what is best for you.

fermi

Thread closed temporarily and posts referred to the forum team.

debt_doctor

Hi,

Any business who has a 'bad debt' claims a writing down allowance for the amount against their tax liability - it becomes a business cost like wages or advertising.
This results in a reduced tax bill.

DD

shop-to-drop

debt_doctor wrote: »

Hi,

Any business who has a 'bad debt' claims a writing down allowance for the amount against their tax liability - it becomes a business cost like wages or advertising.
This results in a reduced tax bill.

DD

Oh that's alright then. It's tax payers that end up paying the debt.

debt_doctor

shop-to-drop wrote: »

Oh that's alright then. It's tax payers that end up paying the debt.

I simply answered the question, however, I am not sure what useful purpose your comment served?

DD

alastairq

Oh that's alright then. It's tax payers that end up paying the debt.

Gotta be a better use of non-existant tax that doesn't go to the exchequer..than business lunches, corporate entertainment, fatuous advertising, etc etc ?

Tax payers do not pay the debt.

Any more than they pay for your recent tax allowance rise?

george_david

shop-to-drop wrote: »

Oh that's alright then. It's tax payers that end up paying the debt.

“Don't judge someone's choices without first knowing their reason.”