My sister is in terrible financial state some one told her to go bankrupt is this feesible?

she lives in a council house has no job the bank gave her an overdraftand a visa card which has got her into serious debt which she cant repay

It will cost her ВЈ300 to go bankrupt & it only takes 1 year to clear your name afterwards.

Tell her to call National Debtline on 0800 808 4000 They will definatley help her.

Tell her to cut up her card & not to even think of getting a loan to ease the strain as it will only make matters worse.

Its way too easy to get into debt but its bloody hard to get out of it.

She needs to set up a payment plan even if its only $20.00 a month.Bankruptcy doesn't mean you don't have to pay it back.

Bankruptcy should be the last resort, it's not good and affects your ability to get credit/bank accouts, etc for 6-10 years. The bank are irrespsonsible giving her the overdraft, given her situation, but that's done and dusted so time to move on.

Get her to speak to the people she owes money to and see if they'll agree a minimum payment per month until she's back on her feet. They like people willing to try to make payments, not those that ignore it until it spirals out of control and the bailiffs get involved. At least it's a council house. They can't take that.

It costs ВЈ370 to get a petition for bankruptcy to go through the courts, some people I know have said it's the best thing they've ever done, some people the polar opposite.

Look here: http://www.insolvencyhelpline.co.uk/bankruptcy/what_is_bankruptcy.htm

But as I said, unless noone's willing to give some leeway on payments, it should be the last resort.

Get her to talk to the bank as soon as possible. They will help her work out a repayment plan.

As she has no job, she can apply for a variety of benefits tyhat will help. They will pay council tax, rent, etc, and she could get jobseekers allowance while lookig for a job.

Only if it's her only way out but she should do anything she can to try to avoid that

declaring yourself bankrupt is one of the worst things you can do. go to the citizens advice bureau for help and advice

The bank that she owes the money to will almost definately be prepared to negotiate on the monthly repayment and reduce it to something that she can afford.

Believe it or not the bank would want your sister to go bankrupt even less than she would.

A debt management company would be able to contact the bank on your sisters behalf and negotiate lower monthly repayments for her.

Try http://www.debt-line.org.uk

Tell her to go to the C.A.B. The advice there is free and good.

Its way too easy to get into debt but its bloody hard to get out of it

/ /
Too true

Get yer sis to the bank asap. they should be able to sort something. bankrupcy should be a last option
alternatively, call the national debtline

I blame the bank for letting her get into the situation. However bankrupcy can have serious affects for her especially in the future. If she and her and any potential husband wish to get a mortgage or credit for cars ect they may find impossible to get finance. She needs to think long and hard about it.

CAB first to decide whether this is a feasible option ?as you don`t give a rough estimate the other advice for you I could give by email it`s up to you.

whatever she does next, just make sure she
gets serious financial counseling counseling after wards.
my suggestions,
from now on , only a DEBIT card, if that!

go to the C.A.B,
they can help her

First off she nees to get rid of the card and find a job, bankrupt's is with you all your life so she needs to try to avoid that at all costs!

Get her to speak to one of the FREE debt counselling services set up by the government (e.g. CCCS). Also contact Citizens Advice Bureau.

All the best!

If I can help then I'm more than happy to. I'm a second income consultant and offer free no obligation advice. If she wants to contact me no problem at all.

Wish her luck,
Ivan
Second Income Consultant - FREE Consultations.
info@liveadreamlife.co.uk
https://liveadreamlife.wordpress.com/ - Blog
http://www.liveadreamlife.co.uk - Website

to declare yourself bankrupt you have to be in over 10 g'z worth or debt and after tou do that you cannot get credit anywhere for the next 3 yrz

Do not go for bankrupt, that's a mistake your never going to shake that off!!!
you want a low interest loan to pay off what you owe, see this
http://debt-consolidation.50webs.org

Bankruptcy Advice
What is Bankruptcy?
Bankruptcy is a formal insolvency route for individuals with serious debts that they cannot pay. Bankruptcy is often the last resort and is usually applied when no meaningful alternative can be offered to creditors.

You may petition for your own bankruptcy or a bankruptcy order may be applied for by one of your creditors if you cannot pay what is owed to them. Whilst the Enterprise Act 2002 now allows some bankruptcies to be discharged after one year this is not expected to be the norm and any proof of reckless spending may result in a bankruptcy period of between 2 and 15 years.

Bankruptcy Advice - Disadvantages
Bankruptcy is personal insolvencyвЂ™s вЂњnuclear optionвЂќ. ThatвЂ™s not to say it is not the right choice for many вЂ“ it often is. But, life wonвЂ™t be the same after becoming bankrupt вЂ“ not least when it comes to rebuilding your credit rating in years to come:

All your assets, apart from those required for a basic standard of living, will be sold. This may include your house.

You will not be allowed to obtain more than ВЈ500 credit unless you first disclose that you are bankrupt

Any income you have in excess of that needed for your basic needs will have to be paid to your creditors.

Your job may be at risk: certain trades and professions will not allow you to work when bankrupt.

Your credit rating will be affected (probably for some time after your bankruptcy ceases) and there may be other restrictions, such as having your bank and credit card accounts closed.

Your bankruptcy will be advertised in newspapers

Bankrutpcy Advice - Advantages?

Bankruptcy Advice
Go bankrupt and almost all you have becomes available to your Trustee to pay off what you owe. Yet, for some, bankruptcy may be the best (if not the only) option:

Once the bankruptcy period has come to an end, all debts are written off. Depending on your circumstances you may be debt free in 1 year

If you live in rented accommodation and up to date with your rent you will be able to continue paying the rent. You have little to loose and ALL your debts will be written off at the end of the bankruptcy period.

Bankruptcy Advice - Bankruptcy Order

Bankruptcy Advice
You can apply to annul (cancel) a bankruptcy order in certain circumstances. An annulment is a procedure dealt that can only be dealt with by the court and can be made at any time the court sees fit.

An annulment may be made if:
a) It can be proved that the bankruptcy order should not have been made in the first place.

b) Your creditors agree to the terms of an Individual Voluntary Arrangement whereby you pay back some or all of your debts over an agreed period of time.

c) The court is satisfied that all of your bankruptcy debts, which must include all fees and expenses incurred during the bankruptcy proceedings, are paid in full, or are guaranteed to be paid.

If a bankruptcy order is successfully annulled you will return to your pre-bankruptcy position. However, any disposal of assets that has been dealt with by the Official Receiver or trustee will still be valid and will not be reversed. Any other assets that had, until this point, been included as an asset of your bankruptcy, will be returned.
Remember that any debts that you were liable for prior to the bankruptcy order being made will still stand if they were not dealt with during the bankruptcy period. If you do not pay these debts as they fall due, your creditors may still take proceedings against you that may result in a further bankruptcy order being made.

Bankruptcy Advice - Restrictions

Bankruptcy Advice
Bankruptcy is something that should not be taken lightly. Whilst bankruptcy may be appropriate in some circumstances it must be remembered that there are significant consequences and restrictions.

The duties of a bankrupt
While you are bankrupt you must co-operate fully with the Official Receiver. It is essential that you are completely honest and open with him about your assets and liabilities at the date of the bankruptcy order. If your financial circumstances change at any time before your bankruptcy you must advise the Official Receiver immediately, for example a change in employment or a windfall.

You must:

provide details of all your assets and hand them over to the Official Receiver if asked to. This may include your property but only your share of it.

hand over all documents, books and records relating to your financial affairs.

attend a meeting with the Official Receiver or his staff if requested to do so.

attend a meeting of creditors if one is called.

give any other information that may be reasonably requested.

Remember - it is a criminal offence to mislead or attempt to conceal information from the Official Receiver.

The restrictions on a bankrupt
The following are criminal offences for an undischarged bankrupt:

obtaining credit of ВЈ500 or more, either alone or jointly with another person, without disclosing your bankruptcy.

carrying on business in a different name from that in which you were made bankrupt without telling all those involved the name in which you were made bankrupt.

forming or managing a limited company or acting as a company director without the court's permission.

A bankrupt may not hold certain public offices. For example, they may not act as a magistrate or an MP.

In addition:

Some professionals are prevented from practising if made bankrupt, including a Chartered Accountant or a solicitor.

Credit ratings may be affected for a number of years to come.

Bankrupts cannot be a trustee of a charity or a pension fund.

When opening a new bank account the debtor must advise that they are bankrupt and conditions may be imposed.

Bankrupcy Advice - Going bankrupt?

Bankruptcy Advice
A court makes a bankruptcy order only after a bankruptcy petition has been presented either by:

the debtor themselves (debtor's petition); or

by one or more unsecured creditors who are owed at least ВЈ750 (creditor's petition).

a supervisor of an individual voluntary arrangement may also present a petition if they believe they have grounds.

A bankruptcy order can still be made, even if the debtor refuses to acknowledge the proceedings or refuses to agree to them.

Once the bankruptcy order has been made the process involved is the same whoever issued the petition.

Issuing a petition for your own bankruptcy?
To petition for your own bankrutpcy you must be able to show that you are unable to pay your debts.
However before making any decision about making yourself bankrupt it is essential that you seek independent advice. For this you may approach an insolvency practitioner or one of many free debt advice providers such as your local Citizens Advice Bureau. If you have carefully considered your circumstances and still wish to proceed, you should contact your local County Court (or the High Court if you live in London).

The staff at your local County Court are happy to help people complete the paperwork needed to present a bankruptcy petition. You will be required to make a statement of your income and your average monthly expenditure so you should ensure that you have prepared this in advance of attending the court.

The court will also require information about all the people to whom you owe money (your creditors). You should include their full name or trading name, their address, the amount you believe you owe or the amount they have demanded from you if this is different, and any reference numbers that may be relevant.

You will be charged ВЈ140 in court fees (unless there are exceptional circumstances) and a further ВЈ310 for the administration of your bankruptcy.

The court may hear your petition may on the same day that you present it, or it may arrange a later date when it will be considered.

How a bankruptcy petition may be made against you
If one or more of your creditors are owed ВЈ750 or more they may issue a bankruptcy petition against you.

Usually a formal demand for payment will be made by your creditors prior to issuing a bankruptcy petition. This may take the form of a final written demand or a statutory demand. If a statutory demand is made you must respond within 18 days. Once 21 days has elapsed from the date of the statutory demand being issued the creditor may issue a petition without additional warning.

What happens once a bankruptcy order is made?
Usually the Official Receiver (see glossary) will deal with your affairs once a bankruptcy order has been made against you.

Within 21 days, you must provide the Official Receiver with all information they require regarding your financial affairs - including a list of all of your assets and the amount and details of all your debts.
Usually, but not always, you will be required to attend the office of the Official Receiver soon after the bankruptcy order has been made.

The Official Receiver is a civil servant who is required to investigate the financial affairs of all individuals who are made bankrupt.

A licensed insolvency practitioner may be appointed trustee in place of the Official Receiver. Like the Official Receiver, they are required to deal with the disposal of your assets and the making of payments to creditors.

HOPE THIS HELPS

Bankruptcy is always an option and is her right under the law. It's important to understand the implications.

There has been recent changes in the bankruptcy code such that not all debts are necessarily removed form the person.

I would start by reading this: http://www.legalzoom.com/articles/article_content/article13587.html It's a reasonable view of the situation and implications.

FWIW, it is always better to try and work through a debt situation without going bankrupt. With recent changes in the federal code, bankruptcy has more "teeth" and consequences than it used to have. It will be more painful most likely than even 3 years ago. So, it may be the answer but it won't be a pleasurable experience.

I hope this was helpful.

Good Luck,

TBG

First: cut up the visa card and cancel the account. That still leaves the debt but at least she can't charge on it any more. She needs to go see a debt consolidation counselor. He can help her sort out her finances and they will consolidate all her bills into one payment every month. If she declares bankruptcy she will have no credit at all for at least 7 years. That should be her very last resort. Hopefully the debt consolidator will help her, but she will have to change her spending habits as well to help get herself out of debt.

It all depend on how much she owes. If it is a lot of money, going bankrupt is the best choice. However, if she wants to be a lawyer, CPA, or a job that requred her to be bonded, then, she better think twice.
One thing good about bankruptcy is that, she will have a fresh start. She can apply for a secured credit card and reestablish her credit. If she have a steady job and have never missed another payment again, she should have no problem to get a loan later on.

YES SHE CAN DECLARE HER SELF BANKRUPT BUT SHE WILL NOT BE ABLE TO GET CREDIT FOR ANYTHING FOR 10 YEARS I THINK ...ITS A GOOD IDEA IF YOU HAVE ALOT OF DEBT BUT THINK ABOUT IT FIRST !!!!!!!!!!!!

NEW LAWS--MAYBE YES MAYBE NOT.
ATTORNEY CAN HELP.

She should talk to a reputable credit repair agency - but be careful in picking one, some may try to scam her.

www.consumercredit.com -I believe this one is legit.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.024
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy