Hi, does taking this option mean bank loans and the like get paid off so that what bit of income i have coming in can go on things like food and utility bills rather than it going on those debts? Thankyou
In bankruptcy all UNSECURED debts are written off. You will complete a Statement of Affairs in which you will list your incomings and your outgoings. If you have surplus monies then you will enter an agreement to make a payment for 3 years (IPA/IPO) which will go towards paying your debts. If you have no surplus monies, in fact if you have less than £99.00 a month surplus, you will not be required to pay anything and your debts will be written off after 12 months. In bankruptcy your priorities are food, utilities and reasonable living expenses, only after paying for these would you need to pay into your debts.
A bit long winded but hopefully answered your questions.
food and utility bills
Posted - 26 June 2008 : 14:47:04
