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What does bankruptcy involve? please help

(9 Posts)
buriedheadinthesand Wed 20-Aug-08 21:24:17

Have namechanged for this (shameful face)
Been suffering with depression for last 6 months. Anyway my house has now been repossessed - was living 80 miles away with head in the sand. Anyway finally got to CAB today who were really good and are seeing them again in 2 weeks but she mentioned bankruptcy - Is it really ok and what happens or is it not worth it and struggling to pay everyone off. TBH I think I now just want to put everything behind me. Please help if you have been through it or know anything.
thanks

buriedheadinthesand Wed 20-Aug-08 21:44:18

anyone.

fiodyl Wed 20-Aug-08 21:53:54

Have a look at this bankruptcy factsheet

lou031205 Wed 20-Aug-08 22:15:12

Bankruptcy is a way of being released from debts that you can't pay. It is a legal proceeding, and once you are declared bankrupt, it is illegal to pay any of your creditors.

Your case will be taken on by an official receiver, who will examine your circumstances, and your income, and decide if you have any surplus income. In this case, you would be expected to contribute to your bankruptcy for 3 years. If you have little or no surplus, you would not have to pay anything.

You are bankrupt for a year, and get discharged automatically after this. But, if you have been extremely reckless (not just a little irresponsible or buried head in sand) you can be given a Bankruptcy Restrictions Order for up to 15 years, which restricts you to the conditions of bankruptcy.

You will only be able to operate a basic bank account, but to be honest, most people contemplating a move like this have a terrible credit score anyway.

The main thing is to consider whether your current circumstances, without your debts, will support you. There is no point filing bankruptcy if you are headed straight back into debt. It needs to be a final step to get back in the black.

You will also need to be able to pay the costs of filing bankruptcy, which are £485 unless you are on benefits, or earn under £14600, in which case that is reduced to £335.

buriedheadinthesand Thu 21-Aug-08 06:36:11

In all the info it says all bank a/c's will be shut. We have just opened a basic one with natwest. would this need to e shut too.

lou031205 Thu 21-Aug-08 07:17:05

Generally speaking, all bank accounts are shut. Having said that, the official receiver can, with the bank's agreement, authorise an account to continue.

The best thing to do is to book your hearing well away from pay day, then you can go straight out of court to the bank, and apply for a new basic bank account. Instruct employers to change pay details.

The Co-op bank gives basic bank accounts for new bankrupts, and also provides an electron card and internet banking.

buriedheadinthesand Thu 21-Aug-08 09:35:05

thanks. anyone else. any info much appreciated

shinyshoes Thu 21-Aug-08 09:50:01

Take a look here.

This is a great forum that will answer all your questions

www.debtquestions.co.uk/debt_forum/viewforum.php?f=27&sid=c6987d266c4eac29da4a53bf8b16cf21

QueenMeabhOfConnaught Thu 21-Aug-08 14:34:55

Just to pick up on a minor point re Lou's post of 07:17 - it is not up to the Official Receiver to decide whether or not you keep your bank account - it is up to the bank. All the Official Receiver can do is say that he has no objection to you keeping the account.

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