Author Topic: Bankruptcy!!! I would really appreciate some advice.  (Read 1686 times)

Jimmyc

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Bankruptcy!!! I would really appreciate some advice.
« on: Feb 03, 2011, 02:39:01 AM »
Hi, Im strongly considering bankrupcy and I would really appreciate some advice. Firstly, let me explain my predicament. Im 23, I live with my parents and Im unemployed. A friend of mine is a diving teacher abroad, he has offered me a chance to go out there and live with him while studying to be a diving teacher aswel. This will mean I'll have to spend a year abroad training(unpaid). However, I recently took out a few unsecured loans with banks, about £80,000 in total which is all gone and I have no way of paying back. It wasnt a wise thing to do and the money wasnt spent particularily well as I have nothing to show from it now, but I need to sort this out before I (hopefully) head off. So to sum up, I have no assets, no income and I want to go abroad. Will I be aloud to go bankrupt? Will I be aloud to go abroad? And even if I dont go abroad, I have been so reckless with the borrowed money, what will happen?

James Falla

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Re: Bankruptcy!!! I would really appreciate some advice.
« Reply #1 on: Feb 04, 2011, 11:15:33 AM »
Hi Jimmyc
 
Given that you are only 23 I am struggling to understand why the banks would lend you £80,000 but ulitmately that was down to them. Given that you now owe the money and are insolvent, you are eligable to declare yourself bankrupt. You just need to complete the application forms and present them at the local county court with your £600 fee.
 
If you see one, I think you should expect a bit of a grilling from the District Judge about what you did with the money but you just have to be honest. Even given the amount you owe, I think the OR will make you bankrupt for 12 months. They could extend this if they felt you have acted fraudulently but this would be unlikely.
 
In terms of going abroad, there should be no issue with this. You simply need to discuss it with the OR and make them aware of your plans and where they can contact you if necessary.
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Jimmyc

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Re: Bankruptcy!!! I would really appreciate some advice.
« Reply #2 on: Feb 04, 2011, 03:48:01 PM »
Hi James

Thanks for the reply, its much appreciated. Im just trying to get as much information on bankruptcy as I can at the moment to see if its the right course of action. I probably exaggerated the debt slightly, its actually closer to £50,000, which I realise is still a massive amount. Im just wondering what will happen with the OR. I've heard it's usually pretty common to pay some money back into the bankruptcy, but what if I have no assets or job? And does a bankruptcy last for a year or 3 years? How long untill your totally in the clear?

James Falla

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Re: Bankruptcy!!! I would really appreciate some advice.
« Reply #3 on: Feb 23, 2011, 10:48:24 AM »
Hi Jimmyc
 
If you declare yourself bankrupt, as standard you will be bankrupt for 12 months. After that you will be discharged and no longer bound by the terms of bankrutpcy. The Official Receiver (OR) could decide to extend this time but it would be unusual.
 
If you have no disposable income, you will not be asked to make any payments towards your creditors and after you are discharged, any outstanding debt is written off and that is the end of it. However, if you can afford to make some payments, the OR will set up an income payment agreement with you. If an IPA is set up, this will last for three years therefore continuing after you have been discharged from the bankruptcy.
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Jimmyc

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Re: Bankruptcy!!! I would really appreciate some advice.
« Reply #4 on: Feb 23, 2011, 09:55:23 PM »
Thanks James. This has been very helpful. :)

James Falla

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Re: Bankruptcy!!! I would really appreciate some advice.
« Reply #5 on: Feb 25, 2011, 04:29:39 PM »
No problem at all Jimmyc. Let us know if you need any more advice :)
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