old know all
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Your trustee will take over all your credit card accounts and bank accounts. Any where you owe money go in the creditors heap any with money in them go in the assets heap. Once all of your assets are identified, the trustee will share them out among your creditors.
You can't get any more credit - with a card or anything else until you have been discharged. After that you can, but no-one's going to be keen to lend you money or give you a credit card. |
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Skidoo
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Yes they will. If you are declared bankrupt you lose ALL lines of credit. It may be years before you can even get cash out of the hole in the wall. |
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steven e
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yes. |
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lma18
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the honest answer is YES |
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pollywallydoodle
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Yes all credit stopped . If you cant pay for the credit you have had they are not going to allow you to use more, and you should not want to. I'm not being critical but if you have reache d the point of bankrupcy credit needs to stop anyway. You will have difficulty forr six years from the date of the bankrupcy and probabl.y a little longer. |
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Mark A
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Definetely your in a position where you wont be able to obtain credit.. |
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Linda H
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If you become bankrupt everything will be cancelled and you will be unable to get credit for a long time, dependant on the country you are in the time period varies. Avoid it as it will always haunt you as whenever you ask for credit they will ask you have you ever been bankrupt and even insurance companies can ask you as well. Hope this helps. Contact your debtors and work out something with them rather than go bankrupt.
Kev |
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Mark J
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if its a business bankrupcy then you should be OK, assuming you were trading as a limted company.. if not and you were trading as , or in a private capacity then its treated as a personal bankrupcy
a personal bankrupcy is a different matter. effectively you are insolvent, your trusteee will seek to negotiate a payment stragtey with your creditors. you will be unable toopen or hold a bank accoutn during the period of your bankrupcy. when you come out of bankrupcy in theory you start afresh. however I guess many banks & lendors will be very wary of providing credit to someone untill they have proved they are financially responsible.
sorry to heart that you are going bankrupt.. its no longer the shameful thing it used to be (and rightly so), but its not an easy option. the nest thing to do would be to negotiate with your credtiors right now and try to work out a payment paln which avoids you going bankrupt. many banks may well prefer to get some of the money rather than all of it, especially if you can demonstrate you are trying to meet your obligations,. at the very least many will hold their punative interest rates |
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just trying to make a difference
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All your bank accounts are usually 'frozen' by the bank when it becomes aware of the bankruptcy order. So you will need to make alternative arrangements for receiving money into your account and paying standing orders, direct debits etc. You should not try to open a new bank account before the bankruptcy order is made, because this account will also be frozen.
Some banks may allow you to keep using your existing bank account. But even if your bank agrees to this, they will freeze the account when they first hear about the bankruptcy order.
Will I lose the money in my bank account?
Any money in your account at the date of the bankruptcy order is an asset in the bankruptcy. So it will be claimed by the official receiver. Likewise if you have an overdraft etc then it will become one of your debts. (so the same rules will apply to your credit cards, ie. they will be frozen and counted as debts)
For more advice on the procedures of bankruptcy see the insolvency service's website http://www.insolvency.gov.uk/ or visit your nearest citizen's advice burerau |
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John S
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http://www.insolvency.gov.uk/
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings:
* free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and
* make sure your assets are shared out fairly among your creditors.
Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves. |
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liquidator01uk
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Yes they will be cancelled - the act of going bankrupt will be a breach of the credit agreement and you will be in default automatically, even if you do not owe money on it.
Like another poster says, a bankrupt can have a bank account but you should not open one before you go bankrupt because that account will be frozen too. It is a commonly held misconception that you can't have one though.
Another very good point is if you are in a position to go bankrupt why would you want a credit card? Again, there would be nothing legally stopping you getting one after you're bankrupt, but it is unlikely anyone would give you one - banks are reluctant even to give cheque guarantee cards. Legally you cannot incur credit over £500 (up from the previous £250) without disclosing your status as an undischarged bankrupt. If you do, you could face criminal charges.
Before you go bankrupt, consider the alternatives, such as an IVA. Bankruptcy may seem to be a quick fix to getting away from your debts, but it is a very serious step to take.
An insolvency practitioner (find them in your area on yell.com) will advise you of the best way forward. or contact me for some free advice. |
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alatoruk
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yes, it is illegal for a bankrupt to get credit over a certain amount (was £250, not sure what it is now) without telling them you are a bankrupt, so as soon as you used it you would be looking at telling them or a jail term....... not worth it really is it |
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LJG
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You betcha. As far as I understand it, when you go bankrupt you are not entitled to ANY debt. You are supposed to be getting out of it and splitting what you have amongst your creditors. Your credit cards wouldn't be welcome! |
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Sandy B
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probably..... |
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Amanda
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yes they will, if you are worried about this and need to talk to someone I would recommend a professional rather than the Yahoo community. Go to your local CAB or have a look at a debt advisors website such as http://www.idealds.co.uk.
The very best of luck, with everything. |
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Scarlett
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Yes they will. |
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stormydays
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All credit facilities will be withdrawn or frozen within 24 - 48 hours of the bankruptcy being filed |
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Ellie.
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Yes you will not be allowed a bank account or any cards until you are discharged . Then you may get a basic bank account . After that it will be a simple case of building up your credit rating again after 6 years has passed. |
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uknative
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From the Bankruptcy Advice Centre (site below): If you are declared bankrupt you can expect to:- Have all bank accounts, credit cards etc closed. |
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dennis
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yes without a doubt |
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Cheeky
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Yes. You'll not be allowed any form of credit. I THINK this is the case for 5 years following bankruptcy, not certain though. |
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Moose
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Most people dont know this... but your credit cards can be cancelled at anytime by the banks. If at any time they feel you are unable to pay they can cancel. |
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Johnny
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Yes of course they will |
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