Bankruptcy Information Centre

[Steve]

So much is written about bankruptcy and most people feel a shame or stigma about going bankrupt or petitioning for bankruptcy, but the reality is that the day that you go bankrupt, may be the best day of your life.

Today creditors provide less and less ability for you to repay your debts in a reasonable or affordable way. That means that outside of a negotiated repayment strategy with your creditors you options are to repay the debt as agreed or legally eliminate your debt with bankruptcy.

The shame and fear of bankruptcy leads some people to enter into token payment plans to repay their debt. These low payment or £1 per month payment plans don't resolve anything long-term. If anything, a debt repayment plan without a forecasted end point may only be prolonging your financial misery for years and years.

In cases where there is no foreseeable way to repay your debt that your creditors will agree to, often the best solution is to face your fear of bankruptcy, and go bankrupt.

Bankruptcy does have some advantages:
It will stop collection activity.
It will eliminate debts you owe.
It will allow you to get a fresh financial start as soon as one year.

And being bankrupt does not mean that you can't have access to a MasterCard for electronic transactions. By using the Myvesta CashPlus MasterCard you can still make travel arrangements, execute online transactions and nearly anything else you would with a debit card.

There are two ways you can go bankrupt.

DIY Bankruptcy

If you have no assets and only debt, you may want to just complete the bankruptcy forms yourself. You can do this online at the Insolvency Service.

But beware, all information you enter online will be stored in the government computers. If you decide to change things latter, it can be problematic.

Also, while the Official Receiver's office does an amazing job, most self-filers do not adequately represent themselves in their bankruptcy petition and pay more per month than they would have if they had sought professional representation to go bankrupt.

Professional Bankruptcy

People with assets, those that want to go bankrupt but want to make sure the bankruptcy allows them to retain the most money possible, or those that want to minimise their monthly payments to the court in bankruptcy, can best do this by working with a licensed Insolvency Practitioner.

An experienced Insolvency Practitioner will work closely with you to evaluate your total situation and help craft a bankruptcy petition that is fair for you and that the court will most likely accept.

Some Insolvency Practitioner's will even complete your bankruptcy forms for you, thus eliminating almost all the pain and work to go bankrupt.

[mhowarth346]

Hi
I was wandering if anyone has any advice for me.I am thinking of going bankrupt because of debt with no assetts. I was wandering if someone could advise me on the following.

what happens to your wages whilst you are in your bankruptcy.(ie what if you get a new job with higher pay)?


Also do you thik the following would also be written of?
Tax credits overpayment

And also an overpayment of wages for quite a large sum of money.