What is bankrupcy? how is it going to affect people as a couple.?

Question

The couple have everything under joint names. If the husband is gonna claim bankrupcy, what about the wife and their shared property.

Answer 1

if they make themselves bankrupt there is a chance they could lose their house and also be made to hand over items deemed not essential for day to day living. also if they have a car the will have to sell it if it cannot be proved that it is necessary for one of them to use for work ( i e if there was absolutely no other transport to get them to their job)  solicitors will try and make them take the easiest option for them so they dont have to deal with loads of paperwork

Answer 2

Well the best thing is for both of them to do it together,because,they need to be able to keep the house & the cars. Otherwise The bank would get them. If they are not able to pay their bills and the bill collectors are hounding them,thn it is best to claim bankruptcy. Once it's discharged,keep making the house payments & car payments on time& wait 2 or 3 years (they will probally start getting offers through the mail) & get a cuople credit cards. Use them responablly,pay every month on time & eventually your credit will get back to normal. The bankrupcy will be on the credit report for ten years,but they will be able to get credit way sooner than that!

A chapter 7 will get everything wipedcout so they don't have to pay anything else. A chapter 13 is a repayment plan with the government. Usually the chapter 7 is the best,because,you can get a fresh start at everything. Even if you grt the chapter 13,it still stays on the credit report 10 years,but you are out all that money. That's why chapter 7 is the best way to go,unless you are a business. So the lady of this couple needs to get with the man & file this thing togethet! They need to go see their attorney now!

Answer 3

A man whose liability is excess than his asset he is known as bankrupt....or one who have the notice of 'protest' from the judiciary court , he is known as bankrupt or insolvent

  and this position is known as bankruptcy

Answer 4

I'm not 100% sure, but i think it puts you as 'blacklisted' which will make it very difficult to get a new bank account for a few years.

Any job you get will have to be cash in hand, or you'll have to get a very good richer friend to help pay your bills...

Answer 5

Here's an easy to read guide to bankruptcy from the Insolvency department.

http://www.insolvencyhelpline.co.uk/bank...

Unfortunately joint assets are seized too - so if your bankrupt partner owns a house jointly with you, it can be seized and sold.  However you will receive your share of the house (eg half) as cash. So you could use your share of the money to buy a smaller property (obviously in your name only).

Have you looked into an IVA instead? It's the last stop before bankruptcy, but you won't lose your assets. There's plenty of firms that offer them - look in the Yellow Pages or online.

EDIT - in response to your edit. The car they may keep if they can prove they need it for work - eg if there's no public transport and he can't get to work, or if he uses his car as part of his work (eg taxi driver).

The house could be seized still, with the non bankrupt getting their share in cash. The reasoning behind this is that the family could rent a house and why should they own their home when they owe money.

Money in the joint bank account can be frozen and can take a while for the wife to prove what's his (to be seized) and what's hers to keep. I'd advise her to open another account in her name only and to put her benefits/wages etc in it. No point putting his wages into her account as that will just add to the confusion. If you don't want his wages frozen in the meantime, by all means he can open a basic bank account in his name. But he mustn't get an overdraft or any other form of credit as this can be taken to be fraud.

Ask your friends about the possibility of an IVA. If they owe over £15K (excluding mortgages) and have a good income then they can have the option to come to an arrangement with the creditors and repay the debt over 5 years. IVAs are good for high debt and good incomes. Basically not for benefits-only incomes.