| |
Major Site Upgrade in Progress |
 |
|
 |
|
Nadeem
Veteran Investor
Joined: 11 Jul 2004
Posts: 639
Cash Points ££ 13955.74
|
|
|
 |
|
 |
|
 Posted: Mon Mar 21, 2005 9:20 pm Post subject: Bankruptcy - What does it mean ? Pro's and cons.... |
 |
|
|
 |
|
 |
|
|
|
|
What does it mean to go bankrupt - a list of some of the pro's and con's of going bankrupt.
Bankruptcy: The Pros
Removes the uncertainty and stress caused by dealing with numerous creditors.
Once an order is made, a third party takes over the administration, decision making and payment process of the debts.
Debtors typically pay less with a bankruptcy order than with an IVA.
Creditors forced to recognise that they must accept less money than is owed.
Certainty that creditors cannot change their minds and that once in place creditors seldom take little interest in the debt.
Once discharged, most debts are written off and creditors cannot pursue them.
Bankruptcy: The Cons
The debtor will lose any realisable assets of value.
If the debtor owns equity in a home, this will almost certainly be sold.
If a business is owned, this could be sold and any employees dismissed.
Should the debtor live in rented accommodation and have rent arrears, this could put the home at risk if the landlord considers those arrears are unlikely to be paid. In this case he could commence possession action. Also, some tenancy agreements contain a clause stating that an undischarged bankrupt cannot be a tenant.
Bank current accounts can be difficult to obtain, though there are some very basic accounts offered by a limited number of banks and building societies.
Very expensive. All fees for the insolvency service, courts and any trustee are taken out of the debtor's assets. There is a 15% levy on all sums received by the Official Receiver/trustee.
If trying to obtain credit of more than £250 (including ordering goods and then not paying for them on delivery) the debtor must disclose his status as an undischarged bankrupt.
The debtor must allow all his financial affairs to be scrutinised, and can face crinimal charges if irregularities are found.
Cannot hold certain public offices, such as MP, councillor or magistrate, or practice certain professions, such as solicitor and accountant. Nor can a bankrupt be a company director or trade under any other name than the one used ay the time of bankruptcy.
Names of those made bankrupt are published in the London Gazette and the local press.
The trustee must be informed of any changes in circumstances during the bankruptcy. Once discharged from bankruptcy, the debtor's assets may still be adminsitered by the trustee/Official Receiver.
Certain debts cannot be written off: fines, maintenance/child support payments, other family court orders, debts to secured creditors, debts from personal injury claims, debts incurred through fraud, debt arising from certain other orders of the criminal court and student loans made under the Education (Student Loans) Act 1990.
Bankruptcy does not affect the rights of secured creditors. Where there are joint debts, creditors can still pursue the non-bankrupt debtor.
So how do you go bankrupt ?
The bankruptcy the Court appoints someone to take over the management of your financial affairs. This person is usually called the Trustee.
You can be made bankrupt by your creditors, although this rarely happens unless you have a lot of assets. Alternatively you can petition for your own bankruptcy but in both cases you must owe more than £750. If you owe less than £5,000 in total there may be other options available to you.
Bankruptcy is a good option for some people and carries less stigma now than it used to. |
|
|
|
|
|
|
 |
Online Finance Tools & Calculators |
 |
| Credit Score Calculator |
Easy to use online Credit Scoring tool - Calculate your credit score now online for FREE ! using the Moneyforums.co.uk credit scoring tool. Also TEN Tips on improving and mainting a good credit rating ! |
|
| Quick Health Calculator |
Easy to use quick health calculator to help you get started on the path to fitness. Calculates your body mass index (BMI). |
|
| "When will I die ?" Calculator |
Calculate when will you die based on your current life style and then more importantly what you can do about extending your lifespan ! |
|
| Mortgage Calculator |
Easy to use online Mortgage calculator tool - Calculate how long it will take to pay off your mortgage and what your monthly repayments will be as well as interest charged per month per each year. |
|
| Savings Calculator |
Use the flexible savings calculator to estimate the amount of interest you would earn given a level of monthly savings, with many optional settings. |
|
| UK Tax Calculator |
Check your tax and NI liability using this easy to use online tool. Outputs, Tax, Ni, Net pay and gross pay on an annual, monthly and weekly basis, also estimates your tax burden and the number of days a year you work for the tax man ! Plus lots of tax saving tips. |
|
|
 |
|
 |
|
Money
Forums Guides |
|
| Credit
Card Stoozing |
The
following guide explains the basics of credit
card stoozing in a step by step basis. |
|
| Discount
Vouchers |
Online
discount vouchers giving upto
50% off in stores such as Dixons,
Tesco, Avon, Currys, Boden and more. Many
of the vouchers are time limited - So check
back regularly |
|
| Money
Saving Guide |
Guide
to saving money on household bills & personal
finances - Start saving thousands of £'s
every year TODAY ! |
|
| Savings
Tree |
A
guide to Savings Accounts, from Cash ISA's to
Regular Savers to Premium Bonds, all explained
in an easy to understand manner. |
|
|
Users
Groups | Profile
| Messages
| FAQ | Sponsers
& Links | Member
list | Recommend this site | Top Money Saving Sitee
© 2004 - 2007 Moneyforums.co.uk / Market Oracle Ltd - Asserts copyright on all topics & posts made on this site. Moneyforums are open forums, and thus posts are NOT endorsed by Moneyforums.co.uk / Market Oracle Ltd . Any and all information provided within the Website is for general information purposes only and nor is or shall be deemed to constitute, financial or other advice. We recommend that independent professional advice is obtained before you purchase any product and/or service. All tools and guides are provided as is for general information purposes only.
|
|
|
