robby

A relative has got into serious debt and this week went to court to declare herself bancrupt.
One of the creditors has lodged a claim against her for her husbands £20k debt for building supplies.
Now by becomming bancrupt she thinks all debts will be written off, she knows the house will be sold/ auctioned and the mortgage company will get their money from the sale but wont all the firms (ntl, gas, leccy, etc) still be entitled to their money owed?
Will she still have to pay back all these others or is it just the builders and mortgage company that gets paid out?

How long is it before she can start getting loans, finance, credit cards, etc again (5 years?)

Ant

*Bankrupt

http://lmgtfy.com/?q=Information+on+bankruptcy+

nick172sport

iTrader: (6)

consumer advise group in google everything there

Luminous

iTrader: (3)

A good friend of mine runs a company that helps people who have debt problems. He covers all sorts of debt and advises on all sorts of solutions. Take a look at www.actionfordebt.com. If there is not enough information there and you want to call him then by all means do so. If you drop me a PM first I will make sure you get his ear

Dingdongler

Am I the only one who sees what is wrong with these two statements?

Lisawrx

iTrader: (1)

No, and I am speaking from personal experience. NOT being judgemental or hard on people (not saying you are Ding btw)

I got myself into a bad situation financially, and I am not blaming anyone else for it, but I am working my way out of it, although it does feel like there is no end in sight at times, but that is not the point here. The point is, I agree with where you are coming from, the last thing on my mind is when I would be able to get credit again. The easy access to it, and me being irresponsible led to the situation I am in, and I may never be like that again, but a the moment, I want to concentrate on getting out of this mess and being more careful, not thinking about when 'free' money might be available to me again. The only thing I have worried about is whether I'd be able to get a mortgage down the line if needed, but it seems like that may not be as much of a problem as it is a secured debt.

That said, finance companies (credit cards) are really irresponsible even now. I get several application forms through for CCs, and it is clear they know I am a risk as the interest rate is so high. I am not stupid enough to get myself into worse trouble thankfully, but some people would be tempted and it annoys me that these companies do this, knowing a person has had trouble in this respect.

As for the OP, I thought all debt was cleared. Was this not explained to her at all when she went to court?

Dingdongler

I see where you are coming from Lisa, and as you say I'm not trying to be judgmental. People have to deal with all sorts of life events and circumstances that can lead them into these situations it's not for me to try and pass judgment over the internet.

And yes the cc companies are still irresponsible. I got myself into a bit of a financial mess many many years ago when I was in my early twenties. Luckily it was one of the few times in my life that I learned my lesson the first time and never repeated the mistake

Devildog

All debts* due and payable or contingent (ie an existing, but future, obligation to pay) are included in the bankruptcy and will, as far as she is concerned, be written off.

*excluding fines, etc.

If the 20k debt is due by her husband a) it should't be included in her bankruptcy unless its a joint debt and b) he will still be liable for it unless he is declared bankrupt too.

In terms of credit rating, her's will obviously be as bad as it gets. The two main rating agencies generally keep details of the bankruptcy for 6 years, although individual credit providers may grant credit before then.

HTH

speedking

The horse's mouth.

robby

Just to clarify a little more
Relative was ok until she remarried - he was a bancrupt before they met so when he wanted anything he would get it in her name running up debts at suppliers, etc (he was self employed and had her name on the accounts at the merchants) - he would do a job but not pay the merchants (don't know where the money went).
1 of the merchants has taken her to court to get his money owed (£20k) but relative has gone to court to declare herself bankrupt, she didn't take all relevant paperwork to with her so another date has been set so she doesn't know the full extent yet.

She is to blame as much as him for putting her name to the finances, etc and it seems he will be scott free if he walks out on her like he did with his ex

She did say (in the heat of the moment after they'd had an argument) that he's taken his name off everything and all debts were in her name only and she didn't know why? - i would have thought she would have to sign paperwork to take full responsability (unless he's falsified her signature)?

TBH i don't have much symphany for her as she doesn't seem to care - doesn't pay debts but goes out every weekend, booked another holiday, etc???????

TelBoy

At fekkin last


Mate you need professional advice, not just opinions from Scoobynet. I know you feel a bit helpless and are looking for snippets of information, but it won't help you in the long run. I hope things resolve themselves but they won't resolve themselves here.

robby

It's not me in trouble - i was just seeing what to expect as she is always over here on the scrounge and i don't want to give her cash as she got into the mess by spending when she should have been paying bills, etc.
I think she's due back in court next week but we only get 1/2 a story to what's happening from her and that changes every time she tells us something.

Jamescsti

My wife's brother was declared bankrupt just after we first met, he was stupid, had a house, mortgage and a decent job working for the council as a qualified electrician, but because his girlfriend is lazy and never worked in her life he slipped into the same mindset and lost everything.

Anyway that was over 5 years ago and even now he's only just managed to get a bank to give him a debit card, he can't get an overdraft and I think he's managed to get a mobile phone in his own name now.

The point is that it's not a case of 5 years and that's it you have a clean record like points on a licence. The bankruptcy still lingers on in the background.

dukeoffenland

Guy I work with went bankrupt took him 10 years to get a basic credit card with a silly lender like welcome finance

SRSport

Im sure theres a simple answer but whats to stop you taking out multiple loans, store up a hundred thousand for example, put it in Brazil bank account and declare yourself bankrupts living an easy life with a Brazilian bank card?

Luminous

iTrader: (3)

Being caught and charged with fraud. Other than that the only hard thing is to get the cash in the first place. There are those who have done just that, although I don't know if they went to Brazil