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T O P I C R E V I E W
S070
Posted - 20 March 2009 : 05:30:53 I'm a student. can I declair myself bankrupt to relieve myself of the debts I am in. What are the knock on affects of going bankrupt
1 L A T E S T R E P L I E S (Newest First)
John
Posted - 20 March 2009 : 07:55:19 Hi
the knock on effects depend entirely on your individual circumstance. If you have any assets they are at risk if you don't you can lose nothing.
Bankrupts often pay a monthly payment, if affordable, towards the debt for a period of 3 years. As you are a student that won't apply.
You will seriously damage your credit rating and may have to wait up to 6 years before you could gain any future credit.
As a student you are perfectly entitled to declare bankruptcy but it will not write off any student loans you may have.
Declaring bankruptcy costs £495, you have to go to the court in person and you may see the judge. You will then be interviewed, probably on the phone, by the Official Receiver's Office to explain your debt.
If your debt's are less than £15K I would wait until April 6th when a new arrangement called a Debt Relief Order comes into being.
You make an appointment with the Money Advisor at your local CAB office. The cost is £90, you will not go to court or see a judge, nor will you be interviewed but your debts will be written off as in bankruptcy and your credit rating will be affected in just the same way.
