Bankrupcy is my only option

alleycat1965_2

Im in debt for around 50K plus the cccs and Payplan cant help as some of the debts have been sold on and ive been advised an IVA would not be accepted. A payment plan would leave me in debt for the rest of my life as i have no real disposable income.

Ive been seperated for 3 years now and will be going through a divorce soon, my ex has the house as we agreed this and she paid me 35K a few years back for my share. This is all gone now. I have no assets to speak of i rent a house and this year im going to take the plunge (bankruptcy) I know that this is a big thing and know the implications, but i have a few questions for those who may know or have been through this:

How intrusive is bankruptcy ie do they come round to your home and rack through your potential assets ?

Dose my employer find out?

My girlfriend lives with me now, is she effected in anyway?

Will they look at my ex's house as an asset as we are not divorced as yet ?

Please help if you can ..... thanks in advance

Paul.

fermi

You can ask your question on MSE's bankruptcy board here as well.

Link: Bankruptcy & Living With It

If rog2 two has thanked you that probably means he is replying to you questions now.

rog2

alleycat1965 wrote: »

Im in debt for around 50K plus the cccs and Payplan cant help as some of the debts have been sold on and ive been advised an IVA would not be accepted. A payment plan would leave me in debt for the rest of my life as i have no real disposable income.

Ive been seperated for 3 years now and will be going through a divorce soon, my ex has the house as we agreed this and she paid me 35K a few years back for my share. This is all gone now. I have no assets to speak of i rent a house and this year im going to take the plunge (bankruptcy) I know that this is a big thing and know the implications, but i have a few questions for those who may know or have been through this:

How intrusive is bankruptcy ie do they come round to your home and rack through your potential assets ?

Dose my employer find out?

My girlfriend lives with me now, is she effected in anyway?

Will they look at my ex's house as an asset as we are not divorced as yet ?

Please help if you can ..... thanks in advance

Paul.

Hi Paul - we do have a 'Bankruptcy and Living With It' sub-forum to DFW, where you will be able to see the answers to all of your questions, as well as seeing how others, myself included have coped with the 'effects' of bankruptcy. You are most welcome to have a look there.

I am pleased to see that you have taken advice from PAYPLAN - maybe you should also talk to one of the Debt Counselling Charities (PAYPLAN are not, strictly, a Charity) such as CAB, National Debtline, or CCCS should you require a second opinion.

Briefly:

1. Nobody is likely to 'visit' your home - unless you have valuable assetts, such as antiques or state of art TVs.

2. Unless you have any joint debts/accounts, your girlfriend will NOT be affected by your Bankruptcy.

3. Your employer is not informed of your Bankruptcy, unless you are in a particularily sensitive job. However, there are certain positions that bankrupts are not allowed to undertake, but these will be made clear to yu at the time of your bankruptcy. Your employer could find out as an announcement is made in the local paper - best to tell him anyway.

4. Your Ex's house will only be considered an 'assett' if you have any 'beneficial interest' in the equity, i.e. you are a joint owner. If the house is solely in her name, and you have not been making regular payments to the mortgage, then it is unlikely to be of interest to the Official receiver.

As I have said, you are welcome to look, and post, on the 'Bankruptcy Board'.

rog2

brianuk wrote: »

Personally, I feel the implications for people resident in Scotland as opposed to the rest of the UK could not be more stark. Although, I am a UK Citizen when this law is introduced in Scotland I will treated considerably more harshly than residents living in the rest of the UK. I feel his is deeply unfair and maybe be seen as discrimination and hope you can therefore look into the matter as this may prove valuable in the future.

I fully agree that the differences, in Law, between Scotland and England - indeed one should also say that there are differences for UK citizens living in Northern Ireland and Wales (although not necessarily concerning Bankruptcy).
The worst case scenario must be the Channel Islands, where creditors can still, albeit at their cost, apply to have a 'debtor' imprisoned: http://www.cab.org.je/index.php?option=com_content&task=view&id=139&Itemid=66

Bankruptcy can ONLY be granted at the discretion of a 'Bailiff' (NB the word has a totally different meaning in the CI than over here).

There are areas where the Law favours Scotland, for example Scotland has a 'Limitation Period' of five years, rather than the six year period in England and Wales, but this does not excuse the discrimination that is clearly in place regarding Bankruptcy in Scotland.

Central Government seems to be throwing out conflicting signals - on the one hand, we have our PM (himself a Scot) talking about 'Britishness' yet, at the same time they are giving more legaslitive power to the Individual Countries, and dependencies, within the UK. Hardly a recipe for 'Consistency'.