What happens when you file bankruptcy?

[Fedupofitnow123]

I've left a domestically abusive relationship, all debt in my name, 1 child and pregnant and considering bankruptcy, but what will happen?

Sorry for the wrong group, the phone wont let me change it

Hi OP. I've reported your post to as MNHQ to move it somewhere you'll get good advice Good luck.

Thank you so much :)

It depends on what you own and what you owe. If you have little in the way of assets and disposable income not much will happen at all. If you have any assets of value then they will be sold for the estate - obviously if it’s a property you would have to move - and if you have the income you might be asked to make payments towards your bankruptcy for up to 3 years.

The debts in your name will be contained in the bankruptcy, aside from a few that are excluded like student loans if you have them, and are written off.

You might have to attend an interview with the Official Receiver’s staff to discuss how you ended up insolvent. If you are deemed to have been reckless, culpable or dishonest in running up the debts you might have an application for a bankruptcy restrictions order made against you. This will extend the period you are subject to the restrictions in bankruptcy by up to 15 years. It won’t extend the bankruptcy - you will be discharged after 1 year.

The main restrictions in bankruptcy are that you cannot apply for credit over a certain amount (I forget how much, a few hundred pounds maybe?) without declaring that you’re bankrupt. You cannot be a director of a company without permission from court. You must trade in your own name if you’re self employed. They aren’t onerous.

It’s a lot less distressing than you might worry. It is a fresh start for people who have got into a position they cannot get out of re debt.

I own a iMac, 2 game consoles, 3 guitars and clothes, that is all, will these belongings be taken?

It’s unlikely. Unless your iMac is brand spanking new and you get an overzealous examiner, or the guitars are particularly valuable. Anything that is sold is done so at auction so usually makes a really low sum, taking possession has to be worth it and unless the asset it worth a lot it’s not likely to be taken.

Unfortunately it’s not an exact science but second hand instruments and computers are usually left alone. Especially if you need them in order to do your work.

Thank you so much! That is literally all we left with and it will be so hard to part with our last items, it is such a mess! Thank you for taking the time

They usually only take high value assets that they can sell without making any loss - eg houses with equity, cars not on finance that might be worth money, valuable jewellery, antiques etc. I think your guitars would have to be really expensive ones for them to even think about it, and your clothes high end designer.

THIS SITE is really helpful.

Speak to Stepchange, you can call them for advice and it's all free. They will go through all your debt and outgoings and tell you of bankruptcy is best option or IVA etc. They are lovely and so helpful.
If you do go bankrupt it's on your credit file for 6 years. They will consider things like if you have a car, house etc and what your outgoings are. There is now no need to go to court either it's done by an online process and phone calls with the Official Reciever.
Hope that helps x