Could anyone please give me any information on Bankruptcy?

I am 25 Years Old and I am around Â£17,000 in Debt, I cannot meet my monthly payments and I already have 1 CCJ and numerous other creditors threatning legal action, I have applied for an IVA but this cannot proceed as over 25% of my overall debt is with Northern Rock an apparantly they are not accepting any IVA proposals, so unfortunatly my only option is Bankruptcy greatly regret getting into debt and never want another Credit Car, Loan or Overdraft etc ever again, I would like as much info as possible please!

Sorry to hear of your money troubles. It is really frightening and draining being in debt, I know.

Bankruptcy may be the answer for you but it is not the be all and end all that some people think. For example, when you apply the court will appoint a trustee to work with you to manage your bankruptcy. Usually, a bankruptcy period is about 2 years but the trustee can actually decide on a longer period, especially if s/he feels you are not co-operating fully with them. This could be because you have assets that you didn't tell them about or you have continued to apply for credit after you have applied for bankruptcy. This period can be extended for up to 16 years.

Once your bankruptcy period ends, there is a further period of 6 years before you can apply for anything financial again so if the period has been extended to the full 16 years, it will be 22 years before you are out of this timeframe. This will affect not only your ability to gain credit (not that you probably will want to ever again) but also the provision of a bank account in some instances and also if you rent, some landlords particularly housing associations include a clause preventing declared bankrupts from renting from them.

It will also have an effect on any assets that you have at the present time like a house, car, tv etc. The trustee can force you to sell any or all of these to offset your debts, regardless of how that leaves you. Do not be tempted to hide them in any way because if the trustee finds out afterwards, you will be penalised by having your period extended (and you don't want that!). Also, if your earning position changes like you get some fantastic promotion during the redundancy period, they can make you give up the extra income you are making to offset the debts.

Also there's the little matter that all bankruptcy procedures are listed in the local paper with your name and address on them.

So if you have little to lose, then bankruptcy might be the answer. There is also a deposit that you must pay to the court - I think it's about Â£390.00 but you can get some help sometimes from charitable organisations to pay this. In our area, funnily enough, Anglian Water cover these costs. It would be worth checking this with Citizens' Advice Bureau.

If you do have something to lose, you could try writing to your creditors with details of your GENUINE income and expenditure and offer to pay it off in instalments. They will be looking for some action from you to ensure them you are serious like taking on an extra job, selling your assets and paying them the profit made, renting a room in your house, returning any cards to them cut up. It could be worth a go. Check with CAB re: this too.

The best people to help you would be the citizens advice bureau.

If you declare bankruptcy, chances are you never will get another credit car, loan, car, or own a house: while there is an "official" period of time before the bankruptcy is discharged, the people you never paid don't wake up the next day and completely forget you spent their money and never gave it back!

You need to start paying small amounts to each of your creditors, each time with an apology letter explaining that's all you can afford right now, but that you are working on it and that you plan to repay them in full.

Cut up all your credit cards. Move to a cheaper place to live. Sell your stuff and take the bus.

You need to learn to spend less than you earn. If you don't, even if you DO file bankruptcy, you will just dig yourself a new hole after that!

You are only 25, so it's not too late to get straightened out...

Good luck!

Bancruptcy is your only answer. It will mean you cannot have a bank account or get credit for two years but it will clear all your debts. As you never want to borrow again it won't hurt your credit too bad. If you have a house they will take it along with your car.

Have a look at this website first . Its the consumer credit counselling service , they are great , they can set up payment plans for you ! Maybe a better option than bankruptcy , 17,000 isn`t a great deal these days ..

Good Luck Daisy x

Ok dont go bankrupt if you own a house cos that will get taken right off you.

If you are going bankrupt - "sell" your car otherwise that will get taken from you too. Just show it that its been sold to somebody (different surname) and they cant argue with it - just get your car back after your bankruptcy hearing.

You have to pay to go bankrupt, but its worth the Â£500 odd pounds to be debt free isnt it?

I wanted to go bankrupt 3 years ago but didnt, now its too late for various reasons, but my friend went bankrupt in December 2004 - and despite what some people on here have told you - her and her boyfriend (who also went bankrupt - together they owed Â£45,000) got a mortgage and now own their own house so it is possible (Platform Company - will lend money to anybody).

If you really cant see a way out then just do it.

you should look up the bankruptcy laws in your state. most of your assets are except up to a certian amount.
Depending on your income and the means test will depend on what chapter you will go into 7 or repayment 13.
13 you get to keep everything and should take 3 to 5 years to pay back. go to infotapes.com they have all kinds of info and also you can run your credit report for free from all 3 once a year.

The CAB is one place or an insolvency practitioner.

Get proper advise and consider the implications before you do it.

Remember under bankruptcy you loose control of your assests for 3 years.

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