You will no longer be obligated to pay back your debts while still being able to retain the property, but you won't be getting any kind of credit for about 7 years. This is chapter 7 bankruptcy.
You will no longer be obligated to pay back your debts while still being able to retain the property, but you won't be getting any kind of credit for about 7 years. This is chapter 7 bankruptcy.
You will no longer be obligated to pay back your debts while still being able to retain the property, but you won't be getting any kind of credit for about 7 years. This is chapter 7 bankruptcy.
Not true, actually. You'll actually be inundated with credit card applications. Most of them will require a deposit of some kind, but after that initial period is over (usually 90 days - 6 months), you'll get limited, unsecured credit that gradually increases. Every bankruptcy lawyer will tell you that the BEST thing you can do after declaring bankruptcy is to get a credit card, use it regularly for something small like weekly gas or something, and pay it off entirely every month.Because they don't want it to affect their credit score. That bankruptcy is on your record for about 7 years. That's about 7 years of pretty much no credit available to you.
EDIT: Make that 10 years then.
I don't know the rules in the UK, but this is how it worked when I declared bankruptcy.If you had already payed off the loans for your home and car, and wanted to declare bankrupty because you had some unexpected expense, such as you are stranded in another country and have to be air lifted out, at a cost of 150,000 US, would the bankrupty declaration allow you to keep your home and car?
I read in the news about a guy who was mountain climbing in Columbia. He is now in hospital there with a spinal injury. His father is appealing to the public to donate towards the over 100,000 it would cost to fly him back to England, by air ambulance. He had no medical insurance. Couldnt he just get back to England at that cost, and then declare bankrupty. Or would he or his parents lose everything they have to pay the debt? Getting home and declaring bankrupty seems like the sensible option, because it may take a lot time to get the money together to get home otherwise.
I know little about economics, so would somebody who does know, explain how it works.
How does it effect a persons life and finances?
If you had already payed off the loans for your home and car, and wanted to declare bankrupty because you had some unexpected expense, such as you are stranded in another country and have to be air lifted out, at a cost of 150,000 US, would the bankrupty declaration allow you to keep your home and car?
I read in the news about a guy who was mountain climbing in Columbia. He is now in hospital there with a spinal injury. His father is appealing to the public to donate towards the over 100,000 it would cost to fly him back to England, by air ambulance. He had no medical insurance. Couldnt he just get back to England at that cost, and then declare bankrupty. Or would he or his parents lose everything they have to pay the debt? Getting home and declaring bankrupty seems like the sensible option, because it may take a lot time to get the money together to get home otherwise.
sort of. you can attempt to keep your home and car, and continue to pay for them. those debts can only be written off if you give them up. bankruptcies are on the credit systems for 10 years, but you can refile in 7 years. you can get credit, but at very high rates.
it is my understanding that debtors who file for bankruptcy must now attend a credit counseling class prior to filing their bankruptcy petition.
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