Bankruptcy – the good, the bad and the not so bad
Posted March 7th, 2008 by debt guru
Your council will not force you into bankruptcy if you refuse to pay your council This is not true.
If you owe anything over £750 in unsecured debt and you also owe council tax,
the council can instigate proceedings for your bankruptcy.
You will be able to keep your car if it is valued at less than £3,000
Again, not true. It does not matter how much your car is worth, if it is not
needed for work and it can contribute to your overall debt, you will have to
sale it. However, if you need a vehicle for work and it is valued at more than
£3000, you will need to find someone to pay the excess. If not, your vehicle
will be sold and the cash will be distributed amongst your creditors. You will
then have to buy a cheaper model.
Companies in Great Britain are able file for bankruptcy
Not true. Only a person can declare bankruptcy. A company in England can
only go into receivership, liquidation, administration or be’ wound up’ but
technically cannot be deemed as going into bankruptcy.
Bankruptcy restrictions only last twelve months
This is true but only if you comply with all of the rules of the bankruptcy. If
you do not cooperate with your Official Receiver or the court trustee, the court
could suspend your discharge. You could also run the risk of the court issuing
a bankruptcy restriction order against you if evidence is found of any
misconduct such as applying for a loan shortly before declaring bankruptcy.
Such a restriction could remain in force for up to fifteen years.
Talk to anyone on the high street and you will receive mixed messages regarding Bankruptcy, here are some of the most popular claims.
If you owe anything over £750 in unsecured debt and you also owe council tax,
the council can instigate proceedings for your bankruptcy.
Again, not true. It does not matter how much your car is worth, if it is not
needed for work and it can contribute to your overall debt, you will have to
sale it. However, if you need a vehicle for work and it is valued at more than
£3000, you will need to find someone to pay the excess. If not, your vehicle
will be sold and the cash will be distributed amongst your creditors. You will
then have to buy a cheaper model.
Not true. Only a person can declare bankruptcy. A company in England can
only go into receivership, liquidation, administration or be’ wound up’ but
technically cannot be deemed as going into bankruptcy.
This is true but only if you comply with all of the rules of the bankruptcy. If
you do not cooperate with your Official Receiver or the court trustee, the court
could suspend your discharge. You could also run the risk of the court issuing
a bankruptcy restriction order against you if evidence is found of any
misconduct such as applying for a loan shortly before declaring bankruptcy.
Such a restriction could remain in force for up to fifteen years.
Consolidation loans are one way of becoming debt free, but not the only option to consider. Get Debt Help from a company or organization you can trust.
Good Post