Real implications of going bankrupt?

[miaowwoof]

Hi

 

Heard a lot of people recently have taken themselves to court and gone bankrupt. From what a few of those have told me it's an 'easy' way out? But is it really?

 

I know the ones who work still have a cut of money taken out of their wage but it's not much.

They have had thousands (over £70,000) of debts just wiped off!! No more stress! It only stays on their record 6years.

 

Is it really this easy? Or are they hidden implications?

[andyofborg]

you will find getting any form of credit either impossible or very expensive

have a great deal of difficulty opening anything other than a very basic bank account

will not be able to get certain jobs or hold some public offices

will possibly lose control of all your assets including your home

[Ghozer]

I went bankrupt in 2003 due to loosing a job, and having a bank loan and a couple of items on finance, been unable to pay the monthly costs interest was added and I ended up with around £15,000 worth of debt.

 

I went bankrupt and at the time it cost me £300, since then I have been unable to even open a bank account, get any form of credit (except the high interest or provident), and I have only just recently (in the last year) been able to get a bank account and mobile contract again, I still get refused when applying for an overdraft at my bank... I still cannot get any other form of credit (which is a good thing if i'm honest) but the annoyance of not been able to even open a bank account was the killer...

[medusa]

If you can live within your means, pay cash for everything that you need and aren't precious about your possessions then I don't think that there's anything truly scary about being bankrupt.

 

It will mean that you wouldn't qualify for the finance to buy a new toothbrush and wouldn't get a phone on contract or a current account, but I've had the same for the last 10 years while I've been paying off the debts that my ex-husband left behind and it's really not the end of the world and you can still use a basic bank account.

 

The biggest issue is if you are a home owner and have a house which has significant equity in it because you will be expected to sell the house to pay off the debts and then won't qualify for a new mortgage, so you could be converted from home owner to renting tenant. You could also have various possessions seized and sold to contribute into the pot if they're not considered essential and could be thought of as assets.

 

The other thing that you have to bear in mind is that if you leave it too long and one of your creditors takes you to court to have you made bankrupt forcibly then your bill goes up by huge quantities and that is likely to mean that you have no left overs at all from the sale of a house or other large assets.

[miaowwoof]

But if someone in that much debt chances are they can't get credit anywhere anyway! So that's not an implication is it really.

 

Also I don't they have had their own home or a car (no assests)

 

A basic bank account should be sufficient tbh

 

So it really does sound easy :/ apart from the stigma of course.

[Alex C.]

Co operative offer accounts to bankrupts

 

My mum and step dad both went bankrupt after purchasing a pub and being scared out by death threats (they had a 2 year old son and decided it was easier to just 'get out') - within 2 years, they were discharged and my mum has since got a overdraft and credit card with HSBC, and my step dad has got catalogue accounts and contract phones.

 

They got a new bank account pretty much straight after they were bankrupted - with co-op.

[shortcrust]

But if someone in that much debt chances are they can't get credit anywhere anyway! So that's not an implication is it really.

 

Also I don't they have had their own home or a car (no assests)

 

A basic bank account should be sufficient tbh

 

So it really does sound easy :/ apart from the stigma of course.

 

(my bold) In your circumstances I would says it's a attractive option. And (I'm fairly sure...) it only stays on your credit report for six years.

[miaowwoof]

(my bold) In your circumstances I would says it's a attractive option. And (I'm fairly sure...) it only stays on your credit report for six years.

 

Those aren't my circumstances (I missed the word 'think' out) they are the circumstances of the people who went bankrupt recently who were bragging about it all.

[shortcrust]

Those aren't my circumstances (I missed the word 'think' out) they are the circumstances of the people who went bankrupt recently who were bragging about it all.

 

Sorry! Just skimmed and didn't read properly.