Is Bankruptcy right for me?

[jgl34barons]

I am wondering if Bankruptcy is right for me? I am moving out of the UK for good. Now I have a unsecured loan of �40,000 with a high street bank, would it be right for me to claim Bankruptcy on that debt? I am not worried about my credit status in the UK!

[EverClean]

If it's unsecured then why would you want to make yourself bankrupt?

Tell the lender you can't afford it, send thenm your income and expenditure details and ask them to freeze the interest and take a nominal amount from you as settlement or every month.

If you have an other property or assets then you will stand to lose them by declaring bankruptcy.

If you are trult not worried about your status in the UK then just leave - why go through the bankruptcy process?

[themas]

You can only make yourself bankrupt if you are insolvent - i.e. you are unable to pay your debts. The wording of your question gives no indication that this is the case.

If it is the case, then bankruptcy is an option but - as everclean says - you could lose any assets you have. The costs of the bankruptcy are several �000s and - if you had sufficient assets - you would have to pay these as well as pay off the debt.

It is not a good idea to go abroad & just leave debts behind. The creditor may well sell the debt on to a firm that manages to trace you & a local firm in the country you are in could then become involved - & you would probably find the debt collection laws much tougher than in UK. In some countries you can still be imprisoned for debt.

[annie0000]

Why not just repay the money you borrowed and spent?

Is it really a hard concept to grasp - spending money that is not yours means that you owe it and need to repay it.