bankruptcy

peaches67

if you go bankrupt, does it clear all your debts?

sharon_currie

peaches67 wrote: »

if you go bankrupt, does it clear all your debts?

What is Bankruptcy?


Introduction

Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year). Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases.
Please note that if your are ever faced with the prospect of bankruptcy you should look at alternatives as soon as possible such as the
Individual Voluntary Arrangement procedure (IVA).
Bankruptcy is one way of dealing with debts you cannot pay.

The bankruptcy proceedings:-

1. free you from overwhelming debts so you can make a fresh start, subject to some restrictions
2. make sure your assets are shared out fairly among your creditors.

Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.
How are you made bankrupt?

An individual can be made bankrupt either in one of three ways:

• Voluntarily - By the debtor themselves.
• Involuntarily - By the creditor owed money (£750 Minimum).
• The supervisor or anyone bound by an IVA

A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order is made is both difficult and expensive.
What are the implications of bankruptcy?

• You lose control of your assets.
• You cannot obtain credit for over £250 without the permission from the lender.
• You cannot act as a company director.
• You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
• You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
• You may not practice as a Charted Accountant / Lawyer.
• You may not act as a Justice of the peace (JP).
• You may not become an member of parliament.
• You may not become a member of the local authority.
• Your credit is affected for many years after the annulment.
• You may be publicly examined in court.

What are the advantages of bankruptcy?

• For the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year (or less in some cases).
• For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out.

RAS

hi guys

Peaches needs to know about a joint debt obtained by her ex (some doubt as to whether the sig is hers). He went BK in 2004.

sharon_currie

RAS wrote: »

hi guys

Peaches needs to know about a joint debt obtained by her ex (some doubt as to whether the sig is hers). He went BK in 2004.

They will go after him for his share of joint loans ect

rog2

You DEFINITELY need some legal advice here, peaches.

IF the signature is genuine, and the debt is in both of your names, then the creditor CAN chase either party for the debt - i.e. if one partner declares bankruptcy, then the creditor can still chase the other partner for the debt.

Under the Limitations Act, Property-related debts do not become 'Statute-Barred' for 12 years, as opposed to 6 years for most other debts. Some Mortgage lenders, though, would no longer chase after 6 years.

IF the signature is forged, then you need legal advice as soon as possible.

informer

hi, have you responded to this letter yet, in any way.

RAS

peaches

Informer has been reported to abuse for another post on here tonight. Do not respond to him.

informer

peaches67 wrote: »

if you go bankrupt, does it clear all your debts?[/qu
Bankruptcy is an individual situation, wich needs to be done for the benefit of the individual, for the remainder of his life, therefore controling the process is the key to achieving the result required, so yes it can clear all your debts.

RAS

bat to the rescue!!

informer

RAS wrote: »

peaches

Informer has been reported to abuse for another post on here tonight. Do not respond to him.

I am unaware of this situation, I shall look into it immediatly.

RAS

How about you delete your posts first?