Author Topic: Why not go bankrupt?  (Read 19839 times)


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Why not go bankrupt?
« on: Oct 02, 2012, 11:52:56 PM »
Hello, I am swimming in unsecured debt (around £16k) which I cannot pay back. I have no assets to speak of and am thinking bankruptcy could be my best option.
Bankruptcy would not effect my job and I am fairly confident it would not effect my tenancy. Could I trouble you to have a think and tell me if there is something catastrophic I have not considered? It seems to me like it has more going for it than against. Obviously my credit rating is already shot to pieces. Any thoughts would be much appreciated.

James Falla

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Re: Why not go bankrupt?
« Reply #1 on: Oct 23, 2012, 10:03:53 AM »
Hi there magicsam
If you are not a home owner and have no car and bankruptcy will not affect your job then I can really think of very little reason why you could not consider this solution to deal with your debt problem. If you go bankrupt your landlord will be told, however if you are up to date with your rent and you warn them in advance it is very rearly a problem. From what you have said I think bankruptcy is the right solution for you. However just check the actual level of your debt. If it is below £15,000 you might be eligable for a debt relief order which will cost far less to implement.
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Richard Stockburn

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Re: Why not go bankrupt?
« Reply #2 on: Dec 22, 2014, 01:57:20 PM »
I agree that bankruptcy is probably the best way forward as you have no assets and your tenancy is not under threat. The only possible threat is something called an Income Payments Agreement (IPA) which the OR might impose if you have surplus income after all of your monthly expenses. This would oblige you to make a monthly contribution for 36 months, something you could well do without. However, if you are on an average income and responsible for rent, council tax, bills, etc. it is possible to avoid this in most cases. Best of luck. Richard Stockburn 01425 600129