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Anyone have information on bankruptcy, does it affect your home being in council rented property also would it stop you saving for to go on holidays also do they take the car it isn'nt on finance and i need it for work , currently i am with a debt management(PAYPLAN) AND THEY HAVE BEEN LOVELY but now struggling each month for the £150 as with rent and council tax and energy bills

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It wouldn't affect your house as they can't seize what you don't own to repay your debts. As long as you pay the rent on time, that would be safe. They can take your car if it isn't financed (not sure about the rules if it is on finance) but there might be something that could be done if you really relied on it for work. Could you try and adjust the amount you're currently spending on your debts rather than going down the bankcuptcy route..?

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Bankruptcy may not effect your house as long as your rent agreement doesnt have a bankruptcy clause written in it.

 

Does not stop you saving for a holiday, but i doubt you would be able to go on one while your bankrupt as the official receiver would want the money if you had saved a large sum.

 

Cars are a tricky one, it really does depend on the OR and your circumstances, on how much its worth? if it is possible you can use public transport etc.

 

Have you spoke to payplan? see if they can relook at your bills and see if a debt management plan is still an option? bankruptcy is the last resort and is not something that can be taken lightly.

 

Pm me if you need anymore help.

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There are many advantages to going bankrupt, only assuming that you don't have any assets. If you have then these will be sold and divided up between your creditors. You will eventually get a clean slate although this may take several years so getting a credit card or loan can be nigh on impossible. The biggest problem is that you are banned from having a current bank account which means that you can only make cash transactions . If you're a homeowner then selling it to pay your debts would make you inelligible for council housing as it would be your fault your homeless. If you still have disposable income other than normal living expenses then the court can still insist on a payment order. Visit your local CAB.

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If you're on a voluntary DMP can you not recalculate your budget as you are supposed to do regularly anyway?

 

yup... do this.

 

I had the same problems a few years back and everytime my circumstances change I just did a review of my income/outgoings and the money to the creditors was amended accordingly.

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when i went bankrupt a few years back they asked me about my PC, how old it was/how much it was worth, if I owned a car (as it could be sold and used to pay some towards the debtors) if I owned a house (for the same reason) etc.

 

They also said that I wouldn't be able to start or own/run a business for 3 years, I wouldn't be able to save more than £500 at any one time during that 3 years as anything more would be split to the debtors via the OR

 

Are you working? if not you're in a council house, why can't you get council tax benefit? that would help out with that :)

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I went bankrupt 3 years ago. I find not having a current account very difficult . I have a cash card account but have no facility to write cheques. I do not understand why banks wont offer you a current account. I do not want an overdraft facility or credit card. I just need an alternative way of paying bills with out having the hassle of going to a cash machine. Yorkshire bank do offer a maestro card which is great but it does not offer current accounts to bankrupts, even through i have run the cash account without any problems. Imo try everything else before you declare yourself bankrupt.

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