Response to Should he consider bankcuptcy?

What, if you are made bankrupt you can't have a passport? The court will take away your TV? What utter rot. My mate went bankrupt and the bankruptcy court got him to complete an income, assets and expenditure statement. He swore it before a solicitor and they told him that he would be discharged in three years time. Bye, and have a nice life. My mate did not have any assets of mention, his income was low and his debts were very high. He did not have a mortgage and was living in rented housing. His car was a wreck and nobody was interested in it. He had no further contact from the court at all. After three years he applied for a copy of his discharge document and it was sent by return. TV's, passports? What on earth are you talking about? My mate then did a silly and took out a mortgage two years after discharge without any problems, but he did not tell the bank he had been bankrupt in the past. When he sold this house at a modest profit to buy another home the bank offered him a new mortgage and cancelled it on the day of the sale. They were annoyed that he had not told them he had been bankrupt. After a further year another bank loaned him the money to buy a house, no problems. Going bankrupt is drastic, its the final option to resolve all your financial problems, but if you owe too much and can't pay then it may be the only option. Talk to the CAB who will arrange for an impartial review of your finances. The CAB will also advise on the downside aspects of going bankrupt which must be considered against having a good nights kip. Going bankrupt is certainly not the end of the world. My mate now owns a business, employs ten people and has a turnover of £2m a year. The situation is a lot more complicated if you have a house with equity, if you have young children, if you pay maintenance, and if you own a brand new BMW, etc, etc, but the CAB can advise you on this. Good luck.

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