Would bankruptcy be allowed?

jonnybeegood

My cousin claims that he is applying to go bankrupt. He owes 50K but earns over 60K and is able to meet minimum payments. He also has about 90K of equity in his house. Would bankkruptcy be granted? He seems to think that it will be an easy route of of debt but surely they will not allow this?

I am slogging my guts out to pay back my 40K debt!

[Deleted User]

Your cousin would be mad to file for bankruptcy. The Official Receiver would almost certainly force sale of his house to release equity for creditor repayment. Additionally, if this does not clear his liabilities, and given his high salary an order would probably be given forcing a monthly payment from his salary. I believe this could be for three years but could be wrong. Bankruptcy is only a best option if the debtor doesn't have much to lose in the way of assets. To be honest on his salary, he should be able to sort something out.

Muttipops

He can apply to go bankrupt all he likes, but he will be in a for a very rude awakening when he comes across the Official Receiver.
I do not think he would be allowed to be declared bankrupt, as clearly he CAN meet his debts. If he tries it on, I hope they give his application fee to the homeless, once they have finished laughing.


Salary surplus, house, car, ritzy lifestyle all gone, no more credit for years etc, etc.


Is his name Mr M Oron? Sorry to be rude, but really, he needs to do his research a little more; I would suggest a Christmas present to him of a money management book and in the meantime an email with some links to the Insolvency Service and MSE forum.




Just thought of a kinder possibility; maybe he is in debt for a lot more than he admits to and is just telling half the truth to you in order not to loose face; in that case, I would have sympathy with him.

National_Debtline

Hi

If your cousin’s bankruptcy application accurately reflects his circumstances his application should be declined by the Adjudicator. Your cousin isn’t insolvent as he can afford his debt payments as they fall due, and has assets with a higher value than his liabilities.

James
@natdebtline

Muttipops

National_Debtline wrote: »

Hi

If your cousin’s bankruptcy application accurately reflects his circumstances his application should be declined by the Adjudicator. Your cousin isn’t insolvent as he can afford his debt payments as they fall due, and has assets with a higher value than his liabilities.

James
@natdebtline

LOL, James, I said broadly the same as you, just that you said it in a lot more professional manner; yours reads better, mine reads "Johnny Public".:D

National_Debtline

Muttipops wrote: »

LOL, James, I said broadly the same as you, just that you said it in a lot more professional manner; yours reads better, mine reads "Johnny Public".:D

It's good to have a variety of different styles and input on here to cover all bases Muttipops.

James
@natdebtline

jonnybeegood

I have shown his these posts! I think he is starting to realise that he actually needs to pay this debt off!!

Muttipops

jonnybeegood wrote: »

I have shown his these posts! I think he is starting to realise that he actually needs to pay this debt off!!

Good for you, johnny.

I am usually a Mrs Fluffy, but knowing that he was not the one reading it made me a lot blunter than usual, but I am glad you showed it to him, a tonne of bricks is sometimes needed to deflate the ego and bring reality into play; I shall have to remember that for the future.:D