How do you go bankrupt?

[sacredearth 10]

Above it says that you can't get a bank account after being made bankrupt. Does this apply to, say, Post Office accounts too?

 

If a person had looked at various options, but had no option other to go bankrupt, but was still working (earning minimum wage), how would his employer pay him? If he got paid by cheque it'd cost to have it cashed anywhere other than an account in his name?

 

If you have an existing building society or bank accounts some will let you keep them as a mininmum service. It mostly applies to opening a new account.

[ricky36 11]

you can open a basic account at any bank even if you are bankrupt by law

[feargal 21]

That's good to know, thanks. It'd also be good to know that a bank wouldn't offer him an overdraft (particularly one that they keep extending)... it's not helping!

[MrNM 10]

http://forums.moneysavingexpert.com/forumdisplay.html?f=136

 

Sod the bankruptcy forum. Take a read of the Debt Free wannabe forum first:

 

http://forums.moneysavingexpert.com/forumdisplay.html?f=76

 

If you genuinely can't pay off stuff then get an IVA but only from cccs or payplan

[WYEXILE 10]

Yeah, great. So all us saps who keep up to all our payments will be hit in the pocket as the various companies you owe money to take it out on their other customers. The biggest problem with this country at the moment is that no one will take responsibility for their own actions. You should be forced to pay back every penny, even if it takes you the rest of your life.

[jumperjohn 10]

There is some utter tosh written in this thread. I wish people would think and research before they post on a topic as important as this.

Points to consider. If you cannot cope with your debt burden any longer and you have tried all other avenues of solving this issue, not IVA come to that later, then investigate bankruptcy.

1) CCJ’s ARE covered. Include ALL debt in your forms, however small. A CCJ will become a part of your bankruptcy.

2) BT will NOT cut off your telephone.

3) You may not necessarily lose your car if you inform them that you need it for work. You MUST disclose all assets, why, if you don’t then you could be placed onto a BRO, effectively an extension of bankruptcy for up to 15 years. Do not risk it, disclose all facts, be honest.

4) If you are a homeowner you may well keep your house. If you have children or dependents. If you jointly own a property your partner has the opportunity to buy your share of beneficial interest. This money will become part of your estate and given to creditors. This is good if you want to remain where you are.

5) You CAN get credit whilst you are bankrupt. Up to £500 is ok, anymore then that you have to inform lenders that you are bankrupt, if you don’t you are breaking the law.

6) You CAN open a bank account. You can become bankrupt in the morning and open an account in the afternoon. Co-op do a simple account, no facilities but you do get a visa electron debit card, more than enough. If you run the account successfully for a year after bankruptcy they will gladly open a current account for you.

7) A bankruptcy stays on your credit file for 6 years from the date you are declared bankrupt, it is then removed.

An IVA will stay on your file for the duration of the IVA term, usually 5 years and then for 6 years after on your credit file, effectively 11 years.

9) You can down load the forms to fill in at http://www.insolvency.gov.uk/

This site will also inform you of what you need to know. Moneysavingexpert.co.uk is also a good reference point with forums too.

 

I hope that this helps. Bankruptcy will free you from all debt, not student loans though, and it is a decision not to made lightly. If after you have investigated and you think it could be the way forward then do it. It is an opportunity to start again. Good luck.

[Berberis 10]

jumperjohn,

 

Great, informative post.

 

Can you tell me one thing, why are student loans are not covered? Are all government debts not covered?

[jumperjohn 10]

Student loans used to be covered but there was a surge in graduates declearing bankruptcy and clearing their student loan debt. As a matter of course legislation was passed so now student loans are not covered. I belive all other govenment debt is covered, eg vat and tax debt.

 

I want to add also that if you conform and comply with the official reciever then a personal bankruptcy may only last a few months and not a full year.

 

It's a big decision but since the law changed on bankruptcy, eg 1 year from 3 year restrictions, hundreds of thousands have taken advantage.

[Berberis 10]

Thanks jumperjohn

[jumperjohn 10]

You're welcome!

[Ghozer 112]

Its not, infact its easier. Court costs are around £475 unless you dont earn over £12,000pa??

 

Thats odd, the government have brought in all orts of little hicks to try and stop people going bankrupt as there were so many doing it.

[JonnyRandom 10]

Thats odd, the government have brought in all orts of little hicks to try and stop people going bankrupt as there were so many doing it.

 

Easier than ever, over the last couple of years it's become easier than applying for a passport. It was the government who made it easier, something to do with the enterprise act I think.