Should my partner declare himself bankrupt?

Question

We aint married and we don't own our own house but we have 2 children together. He owes over £15,000 to one company. By going bankrupt will it affect us buying a house in 5 years time? Will my assets come into account when he declares himself bankrupt such as my bank accounts, my car etc?

Answer 1

I wouldn't unless you have no other option-it will seriously affect his credit rating for a very long time even after he gets back on his feet,he'll be considered a bad risk no matter what his situation.

Answer 2

The person that owes the dept and goes bankrupt, will never get credit again at least not without paying a high interest rate

Answer 3

Going bankrupt is usually the last resort.

Some people opt for IVA

http://www.trapped.co.uk

hope this helps

Answer 4

going bankrupt is not a good idea  it sounds a good idea at the time but it can affect a lot of things in the future. there are many agencys out there to help and your assets wont be effected by them. the citizens advice runs one , try them youve nothing to lose

Answer 5

My first answer to this at this time would be no. It depends who the creditor is and if this is a priority or non priority debt.

1) It will cost him up to £495 to go bankrupt.

2) It may well affect your future plans to buy a house if he has a bankruptcy restriction order made against him. If he has one of those, It could be in place for up to 15 years.

3) He can't apply for more credit, while the order is in place.

4) They cannot take your things, if they are in your name only. It doesn't matter if you are married or not. This is his debt. Not yours.

5) Some debts, Court fines, child support and student loans can never be written off, even in bankruptcy.

Have a look at the PDF below for more information.

There are a few things he could try before going bankrupt, such as a debt management plan, a Individual voluntary arrangement (IVA) or if he allows the company to take him to court, they may do an attachment of earnings. Again, it depends on the creditor. Try this stuff first. Good luck.x

Answer 6

~NO

reason - you cannot write off tax debts in a bankruptcy

Answer 7

It sound like you may have already made the decision to go bankrupt. Many times this is the only way to go for many people.

Your significant other needs to really learn from his mistakes. Credit is meant to be used responsibly.

The good thing is that whether you are married or not your credit only belongs to YOU.

If your goal is to buy a home in five years you will need to start saving.

If you purchase a home for 100,000 you will need 20000 down. So, you need to start putting 350/month into savings.  

Just because your credit is okay (i'm assuming) this does not mean go out and rack up more debt. I would not even set a goal for buying a home until these corporations are paid for.

Live modestly and build some financial strength. Then you can tell the lender your price and get a much better interest rate...

Best of Luck..

Answer 8

He will need to seek counsel from a qualified bankruptcy attorney in your area, with his amount of income, they will look at his income, debts, assets, and last 4 years of taxes. If he owes taxes, they cannot be discharged in a bankruptcy, chapter 7....He may qualify for a chapter 13 bankruptcy based on what you've said is his income. To qualify with the new laws the amount of income has to be at a certian income and it looks like he makes too much, but legal attorney can assist with what he can qualify for. Your income, debts, assets are yours, they can not touch your things, if you live in the same household they may want to see the income if you are employed, plus they look at the dependents that you have together, they will also look at home contents by dollar amount, but my best advise to you is to consult with a bankruptcy attorney to understand and know what is contained in filing for bankruptcy. It should be your last resort and something you two can both work together to re-establish his credit after it is discharged. There is life after bankruptcy, some people have purchased homes as little as 3 years after filing. It depends on how tight you are after with spending and improving your credit score. I filed a chapter 7 bk in 07, discharged this past Feb 08, have one credit card with a 500.00 limit, I pay it faithfully and just purchased an 08 Harley Davidson, so, yes, you can re-establish and get back on your feet, interest rates are higher, but...you can gain financial freedom again, it takes a little work and commitment to do it. You can check this website out, it's excellent and someone here on y-answers gave it to me..it's...  www.bcsalliance.com    it tells about debt, credit and bankruptcy information. Read up on the bk info, it'll help explain more what is entailed in a bk....Good Luck!

Answer 9

Depending on who he owes the money to for example Lloyds tsb persay they will hound him to the grave, they are renowned for dirty underhand tricks.  We had to declare bankruptcy all legal after they stole our house through usery (legal term for theft by a bank charging extortionate  interest rates) as far as the courts concerned thats the matter closed.  The statute runs out in September.  After that we're in the clear again but Lloyds know this and have sent us a letter stating they owe us money from over payment on the mortgage insurance, we have to claim it within 15 working days but the letter was dated from 10 days ago.  They were trying to force us to accept it thus rendering the bankruptcy void.  We're smarter than that.  Claim bankruptcy by all means but it doesn't end until after one year after it was filed sealed and stamped by the courts.  Banks will hassle your partner and try to s***w him even using illegal means.  So first stage is CAB, they can mediate then your given a date for filing (thats when you hand money over) then your given another date to go to the master of bankruptcy where your declared bankrupt. It can take 3 months but from the date of the stamp to exactly one year later any contact with the bank has to be done through the courts.  But the courts will back you up, they are excellent.

Answer 10

your assets wont come in to it as your not married and its his debt not yours but it will affect you both if you get married  and it will be difficult to get a morgage in five years time if your partner declares him self bankrupt it is some thing not to take lightly it is a serious matter my mates been their they even took my mates phone line away because of the bankruptsy

you shold know that it is very hard to get a morgage at the moment because of the credit crunch so doing the above will make it nearly inpossible seek proffesional advise from a credit expert

Answer 11

No, don't make yourself bankrupt as it will affect your credit rating. Consolidate all your loans first and agree a payback your creditors agree on.