Pros and Cons

Dustt

Hi
I wonder if those with experience of this situation could provide some information please?  Thanks in advance
When it comes to bankruptcy, does it matter whether you do it yourself, and or let a creditor make you bankrupt?
If you apply for bankruptcy and end up becoming homeless, what that be seen to be "Intentional Homelessness"?

kevker23

From what I've read (and I'm sure someone with more knowledge will be along soon), a creditor making you bankrupt is cheaper for you, as they would bear the cost. But, I believe it will be a more drawn out process. If you do it yourself, you can at least plan it, and have a date in mind where it may make things easier for you to handle. Either way, I believe there is no difference between the two, bankruptcy is bankruptcy (happy to be corrected though)

I think people would need more details about your housing situation. Rental? homeowner? Children etc. All those would play a factor in how a local authority would view you.

luvchocolate

It's usually only HMRC who make clients BR 

sourcrates

Dustt said:

Hi
I wonder if those with experience of this situation could provide some information please?  Thanks in advance
When it comes to bankruptcy, does it matter whether you do it yourself, and or let a creditor make you bankrupt?
If you apply for bankruptcy and end up becoming homeless, what that be seen to be "Intentional Homelessness"?

Not many creditors will actually do this, it can end up being very costly for them, with no guarantee of getting anything in return.

As mentioned, only HMRC will do so out of spite, commercial companies have investors to answer too.

As for being homeless, you don`t go bankrupt if you own a house, not unless you have no other choice, it would be circumstance dependant, if you can give us more details about your situation, it would be easier to answer the question.

JCS1

HMRC do it as a way of closing the file, out of spite is a strong term to use.

fatbelly

Your second question is really to do with how 'intentionality' is defined in housing law.

My understanding is that declaring bankruptcy and that leading to loss of accommodation would not count as being intentionally homeless in itself. However, leaving before being physically evicted could cause a problem and there's always the chance that a council trying to limit their homelessness cases might try it, knowing that an appeal was likely.

But rather than getting into that discussion it is better to say that people with equity in property should avoid bankruptcy and that people in rented accommodation with good payment history and no arrears are generally left alone by landlords if they declare bankruptcy.

Minkym00

sourcrates said:

Dustt said:

Hi
I wonder if those with experience of this situation could provide some information please?  Thanks in advance
When it comes to bankruptcy, does it matter whether you do it yourself, and or let a creditor make you bankrupt?
If you apply for bankruptcy and end up becoming homeless, what that be seen to be "Intentional Homelessness"?

Not many creditors will actually do this, it can end up being very costly for them, with no guarantee of getting anything in return.

As mentioned, only HMRC will do so out of spite, commercial companies have investors to answer too.

As for being homeless, you don`t go bankrupt if you own a house, not unless you have no other choice, it would be circumstance dependant, if you can give us more details about your situation, it would be easier to answer the question.

Should, for example, the self employed just “get away with” not paying tax without any sanction when the rest of us on PAYE get taxed at source? Wouldn’t be much of a deterrent would it? 

sourcrates

Minkym00 said:

sourcrates said:

Dustt said:

Hi
I wonder if those with experience of this situation could provide some information please?  Thanks in advance
When it comes to bankruptcy, does it matter whether you do it yourself, and or let a creditor make you bankrupt?
If you apply for bankruptcy and end up becoming homeless, what that be seen to be "Intentional Homelessness"?

Not many creditors will actually do this, it can end up being very costly for them, with no guarantee of getting anything in return.

As mentioned, only HMRC will do so out of spite, commercial companies have investors to answer too.

As for being homeless, you don`t go bankrupt if you own a house, not unless you have no other choice, it would be circumstance dependant, if you can give us more details about your situation, it would be easier to answer the question.

Should, for example, the self employed just “get away with” not paying tax without any sanction when the rest of us on PAYE get taxed at source? Wouldn’t be much of a deterrent would it? 

No moral judgement intended either way, just opinion.

ToxtethO'Grady

If you are a homeowner going BR does not always mean you lose your home, it is dependant on a few different things.

 - how much equity is there

 - joint or solely owned

 - circumstances of other people in the household

If you are renting

 - insolvency clauses are usually only used when you have rent arrears or paying for damages to the property, if you are up to date and no other debts with your landlord, why kick you out you are a good tenant?