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Bankrupcy
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What is bankrupcy? How does it work? Can you ever get back to your original financial standing?
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Bankruptcy should not normally be considered as an easy option for dealing with debt, especially if you own your own home (even if there is little or no equity left in it). You can lose your home (even if it's in your wife's name - unless you have strong financial evidence to show that this is not to avoid the asset being seized). Your Bankrupty will be advertised in the local press, notification given to anyone financially connected to you, all accounts you hold will be closed and any future assets (insurance payouts, inheritances etc.) can be seized.
As for the period of Bankruptcy :-
New regulations for bankrupts came into force on 1st of April this year. Under the act most bankrupts will be automatically discharged after a maximum of 12 months, rather than two or three years as is currently the case.
At the same time, however, Bankruptcy Restriction Orders will be introduced to protect businesses and the public from bankrupts whose conduct is reckless, culpable or irresponsible. These will last for between two and 15 years and will impose restrictions on people obtaining credit of more than �500 without disclosing their status, trading in a name other than the one in which the bankruptcy order was made and acting as a director.
In short, it can take a long, long time to recover a normal financial standing and is not to be taken lightly. There are several agencies that can help but I would talk to Citizens advice in the first instance as many sites offering 'advice' are just thinly veiled, high-interest loan companies
Strictly speaking, bankrupcy means you are unable to pay your debts and your creditors (for an individual, usually a bank) will start seizing your assets (eg. home, car, etc) - though for your primary residence (ie. where you actually live) this will be the end of a long legal process. And yes you may be able to get back your original financial standing but it will take a long time. In almost all cases it's worth negotiating with your creditors before they start getting serious as they would prefer not to get you declared bankrupt, as it is a long (and so expensive) legal process, even if it means taking a longer time to get their money back.
if you are concidering declaring yourdelf bancrupt in the future then you should get as many bank loans / credit cards / store cards as possible and run up as much credit as u can because regardless of the amount you will be bancrupt for the same length of time (6 years) . i had a default notice against my name ( a phone bill for �30 that wasnt paid due to a dispute with the company ) . even know i paid it eventually they still put a mark against my names credit and this doesnt clear for 6 years resulting in no credit avalible for me so i declaired my self stage 5 bancrupt which ment that i would clear my 10 000 debt with no additional punishment . my only regret is not maxing out all my cards . stage 5 means u do not have to go through the courts but u do pay �100 a month for 3 years to a trustee ( you get a trust deed set up through your citizens advice beuro if u ask )
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