Should I go bankrupt?

[Talay]

Re: Should I go bankrupt?

Sorry Talay i disagree, dont know where you get your info from.

BR stays on your credit file for 6 years, and then is removed, i know because i went bankrupt in 2004, and was discharged in 2005, BR came off in 2010, discharge notice was never shown on my credit file, so it was a year earlier than expected for me to be all clear.

I have NEVER disclosed this to any employer AFTER discharge, and never needed to, they have no way of finding it out as well. Yes you tell them during BR, but it should not affect whether you get that job or not, its merely so money can be deducted to repay your debts....

Every loan, credit facility or mortgage you ever ask for seems to have this question "Have you ever been declared bankrupt". It doesn't ask whether you are discharged or not discharged nor does it care how long ago you were made bankrupt. It simply asks whether at any point in your life have you ever been bankrupt. Answer incorrectly and that is fraud.

You are right that it does not show on your credit file after 6 years but that is not the whole story is it ? All mortgage lenders and probably all other financial institutions have access to another list, compiled out of the Gazette (as it is public information against your credit history, which is private), which permanently declares your bankrupt history.

There is a list on MSE of a guy who phoned about 50 lenders to see if they would lend to an ex bankrupt and only about 10 would. If you are considering life after bankruptcy then I think that is important information to know. Insurance for your house, car and life all need you to answer this question and then penalise you for doing so.

As for work, I'll bet a penny to a pound that any new screening process written up in the last 12 months includes a question regarding bankruptcy. Every financial job almost certainly requires the company to ask their staff as part of compliance. The reach of bankruptcy extends way past the date of discharge.

This is of course only looking at the negatives. There are a lot of positives but I looked into the light at he end of the tunnel which was bankruptcy and saw not fresh fields and a calmer day with rays of sunshine but rather the oncoming light of a train wreck which would never end, even after 6 years.

All I am saying is that you go into bankruptcy fully prepared for the future consequences which you cannot stop and don't find out afterwards that you would rather have kept the genie in the box. That we will all offer whatever support we can is without question.

[jon1965]

Re: Should I go bankrupt?

Thanks for the advice guys. I am not working at the moment and receiving ESA. My career has been in sales, and so far as I know the fact I am in a DMP at the moment has cost me the chance of only 1 job. I do understand that I would never be able to work in the financial services sector which includes retail that sells such things (mobile phone shops , electrical retails , argos etc)

[confused76]

Re: Should I go bankrupt?

Hi Jon

Have a look at these threads first to get a bit more information about bankruptcy.

~ Look here first - Bankruptcy Help ~ - allaboutFORUMS

Bankruptcy Explained - allaboutFORUMS

Please give one of the free debt charities a call to discuss whether bankruptcy would be a suitable option for you. I found the National Debtline to be helpful.

Main recommended sources of help:

• Consumer Credit Counselling Service - Website: Click Here CCCS Telephone: 0800 138 1111
• National Debtline - Website: Click Here National Debtline Telephone: 0808 808 4000
• Citizens Advice Bureau - Website: Click Here or visit your local CAB centre.
  To find nearest CAB centre to you - Click Here

Other things to consider are what line of work you're in, would bankruptcy affect future job prospects for you? Bankruptcy is a last resort but can be a relief if it's the right thing for you. I went br in 2009, sometimes i wish i'd held off a bit longer and considered other options.

Have you considered the unenforceability route?

Unenforceability - allaboutFORUMS

All the best, please stick around i'm sure others will chip in with their thoughts xx

edit - and it is my understanding that br stays on your credit file for 6 years but will forever remain searchable and if you're asked have you ever been made bankrupt in the past you would need to disclose this

[SXGuy]

Re: Should I go bankrupt?

Sorry Talay i disagree, dont know where you get your info from.

BR stays on your credit file for 6 years, and then is removed, i know because i went bankrupt in 2004, and was discharged in 2005, BR came off in 2010, discharge notice was never shown on my credit file, so it was a year earlier than expected for me to be all clear.

I have NEVER disclosed this to any employer AFTER discharge, and never needed to, they have no way of finding it out as well. Yes you tell them during BR, but it should not affect whether you get that job or not, its merely so money can be deducted to repay your debts.

jon, if you own no assets, no house etc, and you see yourself not needing credit for at least 6 years, then BR is the best option to you as i can see.

They will only take part of your income to repay your debts during your bankruptcy, once discharged, they wont touch it.

And during that time, what they do take is Income - Expenses - Less living costs - half the remainder. so its not that bad.

Bare in mind tho, if you go to the insolvancy service, do not wear any jewellery and only take about £5 with you in your pocket (excluding bankruptcy costs), they will take it otherwise.

Dont worry about the estate, providing you do not receive it during your bankrupcy they wont touch it.

And any debt relating prior to brankruptcy after discharge, you will not be liable for, you point them all to the offical receiver.

[Talay]

Re: Should I go bankrupt?

My view of BR was negative on two points. One, you have to answer questions in the future for work and financial dealings as to whether you have ever been BR and there is no 6 year absolution for BR because it is on a list forever.

That said, it does draw a line in the sand and give you a fresh start.

My view would change somewhat if the intended BR already had a property which they could keep through the BR and thus avoid the problem of having to approach a lender after BR for a mortgage. You can live without everyday credit but you cannot so easily live without credit to buy somewhere to live.

[jon1965]

I have debts of c.40K over about 18 creditors . I have no assets and my only income is ESA. I am paying £1 per month token payment to each creditor as a token payment. I am actively looking for work, however there are some mental health issues that make me nervous about starting a new job (stress, depression, low self esteem) and a potential serious court case.
I am in a DMP with a paid for company which costs me £10 pm and for me is worth the stress relief. Please no preaching about it as it works for me
At some point (hopefully many years) I will become the beneficiary of a trust . This will be 1/3rd of my mothers estate and is being done as a trust to stop my (ex) wife or her family having any claim on me when I do inherit. My family have no idea about my debts although my ex and my partner do.
So the question is, is bankruptcy right for me, and how long after I have been discharged can the OR look at my finances. For example if I am discharged in 12 months can they still claim money from any job I have?
Any help would be appreciated