After Bankruptcy
Will I always have to declare that I was once bankrupt?
Well, if someone asks on a form: have you ever declared yourself bankrupt? Then of course you are obliged to tick that box. However, if the question isn't raised and it's not relevant, then you don't need to declare anything. You're certainly under no legal obligation once you're discharged to let anyone know about your bankruptcy.
How am I discharged from bankruptcy?
As per the enterprise act 2004, you automatically discharge from your bankruptcy on your one year anniversary. That as much you complied with the efficiency is requests. Interestingly you can achieve earlier anywhere between 6 to 12 months earlier. If that is the case you will receive a letter from Insolvency service till you know about this.
WIll I ever be able to get a mortgage if I've been bankrupt?
Mortgage lenders are basing their decision on your ability to repay the money that they lend you. Now, if you declared bankruptcy, you actually have no debt that you are repaying currently, which means you have free cash to repay any mortgage repayments that you may incur.
What happens to my debt once I am discharged from bankruptcy?
From the moment that the bankruptcy order is granted, all your unsecured debts are written off. That means you don't owe that money any more. That continues until you are discharged and way into your future.
Do I have to pay any money in bankruptcy?
So you have examined your financial position and you've decided that bankruptcy is your only option. All of your unsecured debts are written off and you think that's it. Not quite. If you have surplus income left over after your essential expenditure then you are likely to be asked to make a contribution towards paying off your debts and that contribution you will need to be making it for three years. Now it is a figure that is agreed between yourself and the official receiver and its called an Income Payment Agreement. It can change during that three-year time period. If you disagree with the amount that the official receiver suggests, then the official receiver can seek to go to court and turn it into an Income Payment Order which means that the courts are ordering you to pay that money.
