How do you go bankrupt?

[Shazbat 10]

Jumperjohn

 

Just curious. My friend declared herself bankrupt after she unexpectedly lost her job. When she got a new job, she had to start repaying money to the courts. She could never explain to me in a way I could understand (not that I'm thick but she isn't good at stuff like that) why she had to repay them. Since then she lost another job, then worked part-time and then left that job. As a result of being out of work for x amount of time her debt has now been completely cleared but I can't understand why, having been declared bankrupt, she then had to repay the courts ....?

[DaFoot 10]

I have been thinking of going down the bankruptcy route for a few years now.

 

Massive debts that I really struggle with, despite earning a reasonable wage. But part of me wouldn't be happy with myself - think I would feel like I gave in/was beaten.

 

Not to mention anticipated problems with sharing a mortgage with my gf.

[feargal 21]

DaFoot, if your debts are too much even on a good wage, can't you negotiate a settlement with the creditors? A friend of mine did this a couple of years ago, agreed a figure and timescale and then it was all over and done, without too much damage to self-esteem.

[DaFoot 10]

The option of negotiating a settlement plan might be worth looking into, but figure if I'm going to spoil my credit record I may as well wipe out the debt at the same time.

 

I would then be able to live quite comfortably.

 

I'll have to look into the options again once we've moved, right now I don't think I'd be able to come to an arrangement I + the bank would be happy with.

[Petrol Girl 10]

i'm in alot of debt & before anyone judges me i wasn't expecting to be in the situation i'm in now (not being able to pay credit cards, store cards ect ect....) as things stand at the moment, the ammount i owe & have coming in there's no way i can pay it back & i now have 2 ccjs & nothing to loose (or i don't think i have?).

 

Its a lesson well learnt but does anyone know how to go about it & what happens ect ect

 

 

:help::confused::blush:

 

Yet again, another one who thinks the world owes them a living.

 

Use other peoples money to buy what they want and then expect someone else to pay for it.

 

You should be made to pay what you owe.

 

I'm probably going to get abuse for this post but you all know deep down, it's the hard truth that hurts!

[WYEXILE 10]

My sentiments exactly. Another example of the 'it's not my fault guv' society we live in today.

[twinky1 10]

This site might help http://www.bankruptcyhelp.org.uk

[jumperjohn 10]

Jumperjohn

 

Just curious. My friend declared herself bankrupt after she unexpectedly lost her job. When she got a new job, she had to start repaying money to the courts. She could never explain to me in a way I could understand (not that I'm thick but she isn't good at stuff like that) why she had to repay them. Since then she lost another job, then worked part-time and then left that job. As a result of being out of work for x amount of time her debt has now been completely cleared but I can't understand why, having been declared bankrupt, she then had to repay the courts ....?

 

Hello Shazbat,

The Official receiver,OF, may have included a PO attachment to the bankruptcy. A PO is a payments order, this is usual if for instance your income exceeds your outgoings. For instance if you take home £400 per week and your outgoings are £150 then there is a suplus. The OF can order you to pay into the bankruptcy, say £60 per week for a maximum of 36 months from the date of the bankruptcy. If you leave a job and do not earn wages in the the full 36 months, the period of payments do not get reduced. For example, if you have paid eg £60 a week for 12 months then don't work for 12 months you will still have to pay for the remaining 24 months when you start work again.

I hope that this makes sence.

[jumperjohn 10]

Yet again, another one who thinks the world owes them a living.

 

Use other peoples money to buy what they want and then expect someone else to pay for it.

 

You should be made to pay what you owe.

 

I'm probably going to get abuse for this post but you all know deep down, it's the hard truth that hurts!

 

A bit of a sweeping, ignorant statement.

Most people have a debt which think can manage, this debt can become un-manageable because of all sorts of reasons. Bereavement, divorce, business failure, accident, job loss, illness etcetera. Who is at fault from the short list that I produced? The partner in a joint mortgage dies, is the deceased at fault? The chap who has a family and is the bred winner becomes ill and cannot work, how do you prevent an illness? An accident leaves a person with a long recovery process, should they have been more careful?

Should people like this be made to pay back what they owe?

Most people borrow and are happy and glad to pay back what they owe. It gives a sense of achievement to pay off the final instalment for the car, and to pay the last monthly mortgage payment is a great feeling.

Sometimes, just sometimes life can stop you in your tracks and turn everything upside down, there has to be help for times like this. Bankruptcy is a solution for many people, a final place to go after all other avenues have been exhausted. Bankruptcy is relief from a debt burden caused by events they wished they could have changed and prevented.

[Petrol Girl 10]

The partner in a joint mortgage dies, is the deceased at fault? The chap who has a family and is the bred winner becomes ill and cannot work

 

Get insurance, that's what it's for.

 

NEXT!

[boutiquechoc 10]

Jumperjohn - simple and great post!

 

However, I was under the impression that whatever you earn after you've declared bankruptcy maybe taken into account - so for 3 years you might end up apaying a big amount out of your wages??

[jumperjohn 10]

Get insurance, that's what it's for.

 

NEXT!

 

How can anyone reply or comment to this great piece of advice. You do give a wondeful insight into your understanding.