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missywen

Hi, I am thinking about going bankrupt and now someone is trying to make me bankrupt. Do I let them and will all my other debts go with it? What is the best option, them or me?

rog2

missywen wrote: »

Hi, I am thinking about going bankrupt and now someone is trying to make me bankrupt. Do I let them and will all my other debts go with it? What is the best option, them or me?

Hi missy - we don't have a lot of information to go on, but here's my twopennorth:

I assume that you have, already, been advised that bankruptcy is a possible solution to your debt problems, and are aware of the implications.

Officially it should make no difference to your situation whether your bankruptcy is the result of a debtor's (self) petition or a creditor's petition. That was what my OR told me at my OR meeting.

Personally I feel that had I petitioned myself, then I would have been in more control of the situation. In my case a Trustee was appointed - this was NOT done by any democratic procedure - the trustee was appointed by the petitioning (and largest) creditor HMRC. Whilst I have already received an Early Discharge, I am still accountable to the Trustee and he has reaffirmed his intention to realise my assetts (house).

Yes - all your other debts will still be included if a creditor petitions for your bankruptcy.

Court proceedings, OR interview, publication of bankruptcy will be the same, although the creditor will pick up costs (added to your bankruptcy estate) and, in my opinion, you are possibly more likely to have to attend the OR interview in person, rather than have a telephone interview.

You may be best advised to get further advice from the CAB or CCCS.

fermi

I would agree with everything rog2 has said.

I would also advise a specific caution though. Many many creditors and the debt collection agencies they employ or pass debts on to now use the threat of bankruptcy to frighten debtors without any real intention of going through with the procedure and making you bankrupt. It costs them far too much money with often little prospect of getting even the fee's back let alone the original debt.

This is particularly common now with respect to sending out bogus "Statutory Demands", or ones that they have no intention of enforcing. If you have received one of these then you must seek immediate advice from one of the organisations in my signature (or a lawyer), but 95% are never enforced via a bankruptcy petition since they are a 'scare tactic'.

In other words, if you sit there waiting to be made bankrupt it may never happen or take a lot longer than many nasty letters might imply.

Finally, I would say that it is indeed better to petition for your own bankruptcy (if you can afford it), since it gives you control over the situation, procedure and time-scale of events.