Author Topic: Considering Bankruptcy?  (Read 3951 times)

wjtrader

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Considering Bankruptcy?
« on: Feb 16, 2009, 06:29:42 PM »
Considering Bankruptcy?

Is your credit situation making you think about filing for bankruptcy? Understand this is a "last-resort" option for individuals who are experiencing trouble paying their bills.
Frequently, these individuals have many negative marks on their report. They often have been rejected for credit recently, have lenders calling them and have multiple bills which they pay late or not at all.
It is not unusual for a home or vehicle to have been repossessed, or under the threat of repossession.
If you are experiencing debt problems such as these, then surely you are looking for relief. Not being able to pay your bills is stressful and truly exhausting.
It is absolutely critical that you discover the permanent ramifications of a bankruptcy.
These laws were designed with you in mind. When you file, most or all of your debts will be resolved.
This happens after your assets are divided amongst your creditors. This is possible even if your assets don't pay all your debts.
This procedure is known as liquidation, or Chapter Seven (7). Chapter 7 is the most popular type. A "trustee" or government worker handles all the administrative and supervisory duties of the proceedings.
Chapter 11, 12, or 13 will give rehabilitation to your business, and the choice of using future earnings to pay creditors. Once you start the proceedings, lenders can no longer attempt to collect your debts.
In addition, you will not be able to transfer any assets that are part of the estate. You will not be able to hide your savings account or gold coin collection with a trusted relative! And, transferring ownership of assets before filing typically does not work, and many are invalidated.
Recently, the U.S. Supreme Court ruled that retirement accounts do not have to be included in your assets that are liquidated.
Regardless of which method you choose, it will likely be on your credit reports for 7 or 10 years. Filing frees you from your existing lenders, but not from any future lenders.
If you do decide to file, it will narrow your options. Good credit is possible to restore, but it will take some time and considerable patience.
A couple things to remember:
1. Any negative item can potentially be removed from your report.
2. New, current good credit will cause your score to improve.
3. Old, negative items falling off your report will also boost your score over time.
4. You must monitor your reports regularly - and dispute questionable negative items such as charge offs, collection items, and late pays.

Hope this helps  ;)

marcus

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Re: Considering Bankruptcy?
« Reply #1 on: Jun 10, 2009, 04:49:45 PM »
Thanks, very informative. I hope you weren;t suggeting people break the law when you said negative entries can potentially be removed.  :-\

weddings

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Re: Considering Bankruptcy?
« Reply #2 on: Jul 11, 2009, 07:29:42 AM »
You can't remove negative entries that are justifiable, unless you go down the road of getting a new identity, NI number etc, which can lead to jail.  :buck2:
Weddings

tokyo

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Re: Considering Bankruptcy?
« Reply #3 on: Jul 11, 2009, 05:06:03 PM »
If I go thru bankruptcy I realise that I will lose my house etc. However, if I move in with someone after I have lost my house will this have any adverse effect on the person I move in with.

gibraltar

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Re: Considering Bankruptcy?
« Reply #4 on: Jul 15, 2009, 07:47:47 PM »
Tokyo, unless you marry that person or open up joint bank accounts etc you have nothing to worry about

tokyo

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Re: Considering Bankruptcy?
« Reply #5 on: Jul 15, 2009, 08:01:43 PM »
Thanks, I have got myself into this mess and if I go BR I do not want her to lose any money. I am looking at all my options such as IVA and DMP. At the moment I am seeking help from the CCCS. Thanks again.

Debtwitch

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Re: Considering Bankruptcy?
« Reply #6 on: Jul 17, 2009, 11:08:07 AM »
Hi All

Just wanted to check wjtrader, did you know the information you posted about BR is from the US, not UK?

There is a huge amount of resource on the internet for anyone wanting advice on debt solutions; a good place to start is the Insolvency Services - government body dealing with personal and company insolvencies - at www.insolvency.gov.uk.  As well as information, there are some very good links.

Forums are an excellent resource also, but please seek expert advice based on opinions posted here before a decision is made on the solution to proceed with. Nearly all reputable firms will offer free consultation but please check out the forums for reputation.
Angela Rosler
Insolvency Manager  e: [email protected]

bankruptcy.co.uk

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Re: Considering Bankruptcy?
« Reply #7 on: Aug 16, 2009, 01:43:55 AM »
1) You can keep your home if it is in negative equity. (You effectively buy it back from the official receiver for £1 + admin fees).
2) You can keep your car if you use it for work, need it for travel as you live in a rural area and the value of the car is below £2000.  
3) No bailiffs will enter your home and remove your belongings. (unless they suspect dishonesty or fraud)
4) The chances are your name will not even appear in the local paper. (This is now at the discretion of the official receiver)
5) Bankruptcy is no longer a punitive measure and as such there is even chance that you will not have to appear in court.
Raphael Gilbert
Head of Insolvency Divison www.ban