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Everyday people are phoning us to ask about their credit worries. This section contains answers to the most frequently asked questions.
What is Bankruptcy?
Bankruptcy is a declaration where you declare by a judge that you
cannot pay your debts. Whilst you are bankrupt any assets that have
in your possession will be used to pay-off your debts. After a
period of time (normally a year) all of your outstanding debts are
written off and you are then debt free.
Can the people I owe money to make me go Bankrupt?
Yes, if you owe £750 or more to a creditor (someone you owe money
to) and you have not been able to agree how to repay the debt. Then
the Creditor can file to make you bankrupt.
How do I file for Bankruptcy?
You can get a form from your local county court offices.
Do I have to sell all my belongings?
Once you are bankrupt the officially appointed receiver or trustee,
may wish to sell any assets you have, but certain goods are not
treated as assets. These are things such as clothing, bedding,
furniture and household equipment for basic domestic needs. Items
necessary for you to carry on your employment such as tools or
vehicles can also be excluded. But valuable household items such as
antiques or expensive electrical equipment could be sold in order
to raise money. If your car is valuable you may have to sell that
and buy a cheaper car instead.
Will I be able to keep my pension?
After May 2000 personal and occupational pensions are unaffected by
bankruptcy. However if you have paid large amounts of money into
your pension prior to filing bankruptcy to try and stop creditors
taking your savings then the court appointed receiver or trustee
will probably use those assets to pay-off creditors.
I am being threatened with physical violence by a creditor, what should i do?
You should report them to the police. But any kind of harassment of people in debt by creditors or their agents is a criminal offence under the Administration of Justice Act 1970.
What is a time order?
A time order is a way of asking the court to give you more time to pay a loan agreement.
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