Can sombody advise me on the costs of making myself bankrupt? I owe £2k from a mortgage shortfall and need to know if this is the best option!

Please help

Alan

-- Alan Curry (ajc127@hotmail.com), April 23, 2002

Answers

Alan,

The insolvency helpline address below gives you the costs & info/advice on this: http://www.insolvencyhelpline.co.uk/bankruptcy/what_is_bankruptcy.htm

Make sure you read the excellent guidelines regarding mortgage shortfall on the home-repo site first. Bankruptcy is the last resort.

Good Luck,Mark.

-- M Amos (idgroms@hotmail.com), April 23, 2002.

Hello Alan,

Silly idea, if you don't mind me saying so - You owe them nothing until they prove it to you or a judge by way of adequate documentation.

Read the do's and don'ts section under reposession - if they want some money, make them work for it.

Good luck

-- (stephen.pooley@ntlworld.com), April 23, 2002.

Alan, I can't believe that you would contemplate making yourself bankrupt for the sake of £2,000. Assuming that you have very low income (because if you are doing ok you could easily settle this claim) then the worst that you should fear is the eventual settlement of this alleged debt by a lump sum negotiated amount of not more than 20% ie.£400. Before you get there however, you can put your lender to the trial of substantiating how they arrived at their total and obtain copies of documents which will allow you to decide whether or not they acted with integrity and competence in their dealings with you. Remember also that the more work you create for them with genuine requests for information and explanations, the less interesting it becomes for them to pursue a relatively small claim. Wish I only had £2k to worry about!

-- Gordon Bennet (arsenewhinger@hotmail.com), April 24, 2002.

Dear Alan, One comment I believe I read, a few threads down, said that it costs YOU £1000 to declare yourself bankrupt. Is it worth that? I wish my alleged shortfall was that small (38K) Regards, Mike

-- Mike (mail@resdev.freeserve.co.uk), April 24, 2002.

Hi Alan,Don't file for bankruptcy. I thought along those lines, but there is no need. I had shortfall claim against me for 45K and by the time it got to court to court I was lumbered with a judgement against me for nearly 75K plus a charging order on my property. All this settled for A one off full and final settlement for 4K thats approx 5% of the total debt.Charging order removed and judgement satisfied. All for a low interest free monthly repayment to family for lending me the 4K

Best of Luck, Daren

-- Daren Otsay (darenotsay@blueyonder.co.uk), April 24, 2002.

It costs an average of £390 to declare yourself bankrupt and you will be bankrupt for 3 yrs at the mo (2yrs if you owe less than £20k) but next year the Enterprise Act comes into effect and all bankrupts will only be bankrupt for 1 year.

-- JMM (JMMUddertugger@aol.com), August 22, 2003.