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Pros & Cons of a DIY Bankcruptcy V Creditor Petition ?

Hi everyone,
I'd be grateful to get some info on pros and cons of a self-bankruptcy application, Versus, Bankruptcy via a creditor petition?
The only asset is the house with limited equity, that could be shared between a number of creditors, once they sell the house (House in joint name, only one partner to become bankrupted)
Also, once the house is sold off, leading to homelessness, would need to apply to the council for housing, would self-bankruptcy be seen to be a form of "Intentional" homelessness?
Thanks in advance,
Comments
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Hi, there's some really helpful information in the following link -
https://www.gov.uk/bankruptcy
And also here -
https://www.citizensadvice.org.uk/debt-and-money/debt-solutions/bankruptcy/
And here -
https://nationaldebtline.org/fact-sheet-library/bankruptcy-ew/
Plus -
https://www.stepchange.org/search-results.aspx?search=bankruptcy
You can always also phone Citizens Advice or National Debtline or StepChange for further help, advice and information. All advice from each agency is free, confidential and non-judgemental.
As you can see, they all advise considering other options if possible before going bankrupt. I had a Debt Relief Order (similar to a bankruptcy) a few years ago and I found just talking through my situation and my options gave me hope for the future. I'm debt-free now and would definitely recommend speaking to someone who can help in an official capacity.
I hope that's of some help and wish you all the very best.Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.1 -
It’s a bit difficult to advise whether this would be a good option for you without a few more specifics. Please can you fill in an SOA and select the format for MSE option and then copy and paste it to this thread. From there we can give some more specific advice. Also ring and chat to one of the people that Mal has linked to tomorrow.Also it is extremely rare that anyone bar HMRC will follow through with a bankruptcy threat so who is saying that they will go through with making you bankrupt?
How much equity is in the house? Your house might not necessarily be sold? Could your OH come up with the money to buy your beneficial interest? If there is less than £10k BI then the OR may put a charge on the mortgage instead.1 -
flipflopflo said:Also it is extremely rare that anyone bar HMRC will follow through with a bankruptcy threat so who is saying that they will go through with making you bankrupt?
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Dustt said:
Hi everyone,
I'd be grateful to get some info on pros and cons of a self-bankruptcy application, Versus, Bankruptcy via a creditor petition?
The only asset is the house with limited equity, that could be shared between a number of creditors, once they sell the house (House in joint name, only one partner to become bankrupted)
Also, once the house is sold off, leading to homelessness, would need to apply to the council for housing, would self-bankruptcy be seen to be a form of "Intentional" homelessness?
Thanks in advance,
Why would you self-declare bankruptcy when you own a property with equity and there are other options?
Please post a statement of affairs in the debt-free wannabe board and we can work through things
https://www.lemonfool.co.uk/financecalculators/soa.php
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