Can someone please tell me about the short and long term consequences of bankruptcy?

[MadreInglese]

Talking on the phone to a friend last night about a woman we know who is going to declare herself bankrupt. Now I don't know much about it but I assume that if you go bankrupt you won't get any of these without guarantors for many years -

Mortgage
Loan
Overdraft
Credit card
Store card
Rental tenancy
Mobile phone contract

Is this right or is it not as severe as that anymore? Also, how long does the bad credit last if you go bankrupt? And I always thought you had to be tens of thousands of pounds in debt to declare yourself bankrupt but am wondering now if this is not the case.

Can anyone enlighten me please?

A bankruptcy will show on your credit file for 6 yrs.
It can affect your career if you are a solicitor for example handling clients money or work for a banking institution.
You can still get a mortgage after you have been discharged but it's difficult, you would be asked for a higher deposit and would be offered higher interest rates.

You would normally have to change your bank account for a basic account with no overdraft facilities/chequebook etc.

Having a guarantor won't get you an overdraft or credit card etc. Especially not in todays climate.

Store cards, mobile phone contracts and and loans are pretty much out.

You can get a credit card from certain companies still but again the interest rate would be extortionate and the credit limit would be very low. You wouldn't get a credit card unless you had been discharged. (normally within approx 12 months.

UNless you are on a very low income you would have to pay an IPA for a certain amount of time, this is a regular payment towards your debts and is assessed based on your income.

You would probably lose your car if it was worth over 2k as the official receiver would expect you to sell it to pay towards debts.

People can go bankrupt for small sums of money.
For example, 1000 debt is just as impossible to pay as a 100,000 debt if you have no income.

Bankruptcy is a lifeline for people who are genuinely unable to pay off their debts. It can be a release from the daily grind of debtors calls and threats.

So are your debts assessed by someone who agrees that you can go bankrupt or can anyone do it?

Didn't realise that about your car either. What if you had a mortgage, would you be handing your keys back to the bank?