March 30, 2010
Bankruptcy what is it?
Kaleb J asked:
I live in the UK and got myself in a mess with money Im around £10000 in debt, and had no problem paying the repayments untill I had a medical condishion which is stopping me to work, Iv thought of alot of things to repay including my own home business , but Bankruptcy has crossed my mind , but what is it what are the benifits and what are the downfalls, my parents say it will effect me for life , will it?
Thanks for that!
I live in the UK and got myself in a mess with money Im around £10000 in debt, and had no problem paying the repayments untill I had a medical condishion which is stopping me to work, Iv thought of alot of things to repay including my own home business , but Bankruptcy has crossed my mind , but what is it what are the benifits and what are the downfalls, my parents say it will effect me for life , will it?
Thanks for that!
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Comments on Bankruptcy what is it?
i think that's where you can go out and get tons of stuff on credit, knowing you can't pay for it, then file for bankruptcy and not have to pay for the stuff you promised to pay for…i know there are cases where people can't help it, i'm not referring to those cases.
unability to pay out yor debts. one can pay in ratio for example 50 dollars for every 100. this ratio based upon guideline given by court while gauging your financial strength. one can file a case in court with regard to his/her own bankruptcy.
please
bankruptcy is a legal filing where you declare you are unable to pay your creditors. there are different types of bankruptcy and if you go this route you need to do some SERIOUS HOMEWORK and be DAMNED CAREFUL. A bankruptcy can stay on your record from 7-11 years depending on what you file. there are a ton of websites, books and lawyers who can assist you. I'd also ask free legal clinics. One other better route for you is consolidation where you can end up paying half or less of what you owe without screwing up your credit. PLEASE do your homework first and THINK before you do anything!!
Vin
Well there are several options other than bankruptcy. You could file a consumer proposal and pay it back. Or consolidate. If you file for bankruptcy you will lose anything of value that you have. You will have to rebuild your credit, which will be hard to do. You will need to put money down, usually $500 or $1000 to get new credit card. It will be on your record for 7 years and your won't be able to qualify for a mortgage or other loans. Bankruptcy is a last option when there is no other way. You need to make an appointment to see a financial advisor and see what your options are.
It's when you aint got no money honey…It will effect you for about 7 years.
Make an appointment with your local Citizens Advice Bureau, they have trained money advisors there who will work with you, contacting your creditors, asking them to accept reduced monthly payments based on your outgoings and income. They can also ask for a bankruptcy pack to be sent to your home address so that you can consider if this is the option you want.
You are declared bankrupt for twelve months now, it used to be three years. You will need something like £325 to pay the court when you file for bankruptcy, a little more if you are in employment, During that time you cannot have a bank account or obtain credit anywhere. it stays on your credit file for six to seven years.
At some stage another option is going to become available for people in similar situations to yours, called no income no assets (NINA's) where you are declared as being unable to pay due to no assets but you won't need to become bankrupt. Not sure when this option comes into force though, maybe ask your CAB.