Bankrupt

[4getmenot]

When people go bankrupt where does money come from to pay off their debts?

[B00]

I always assumed that it didn't. What i mean is I always presumed the money was just written off by whoever they owe it to.

[4getmenot]

so the companys lose out

[B00]

Yeah, think so. I mean you can't take money from someone who hasn't got it can you?

I'm also assuming that though companies have insurances against this sort of thing?

[mccfluff]

if the compnay/sole trader has assets that can be seized a liquidator will come in and sell off stuff and then pay people out a percentage of what they are owned, how they decide who gets what i don't know

[4getmenot]

yer but I just thought maybe the government pays so much.

[mccfluff]

not as far as i'm aware, its just whatever can be gained from the assets/goods that will be used.

this is quite a good link

http://www.insolvency.gov.uk/guidanceleaflets/ guidetoBankruptcy/guidetoBankruptcy.htm

[neo.]

the bank puts the interest rates up...thats where it comes from

[Myriad2112]

Like everything in life it has good and bad attached. Your bad debt gets wiped in 2-3 years but you will lose your house if you own one.