Originally Posted by TrickyDicky
voluntary liquidation is free at the courts-dont know where sludge got £400 from.
Tricky
Thats what my best mate got charged about 6 months ago Rich
The Myths & the Truths
Bankruptcy must not be taken lightly — It should not be considered if you have assets of any reasonable value and own your own home, even if there is little or no equity. Contrary to what might be said about the new Enterprise Act, which states that certain classifications of bankrupts could be discharged in twelve months, this will happen in relatively few cases, and it should be remembered that the stigma of bankruptcy will probably NEVER go away.
Even after being discharged, it can affect the ability to obtain a mortgage or get credit for many years to come. Being declared bankrupt is a very public matter, some of the effects are;
Bankruptcy is always advertised: The bankruptcy application will be advertised in the London Gazette and the local press where you live.
Notification is made to everyone financially connected: Your bank, building society, creditors, landlord, etc will be informed immediately.
Bankrupts cannot run a business: Any business you own will be closed immediately.
Future assets will be lost: Any asset that might have been acquired during the term of the bankruptcy, such as inheritances, insurance payouts/maturities, equity in property, windfalls, etc., and possibly pension income.
All accounts closed: Bank accounts, credit cards will be closed. Anything that is being purchased by lease or HP, such as your car, will be immediately returned to its owner.
Previous Bankrupts: People that have been bankrupt before should be very careful about being made bankrupt again, as the minimum period of bankruptcy is 5 years, and could continue for up to 15 years before being discharged.
Professional & Business Status: Certain employment situations will be prejudiced by being declared bankrupt, and professional and business status will be lost. Membership of many associations and societies will also be lost.
The Myths
"They will not take my house, it is in negative equity." The Official Receiver will place a charge on the property, effectively preventing it's sale,and will wait, long after your bankruptcy has been discharged, to get his hands on any available equity that has come about due to increased property values.
"They won't take my home, I have a wife & young family." They will, unless your partner can prove they have an interest in the property, in which case the Official Receiver will allow your partner to purchase your share of the equity. If they are unable to do this, then the Trustee in Bankruptcy will, after 12 months, have the right to obtain possession and subsequently issue an eviction order.
"I put my home into my partners name years ago." They will take your home, unless you can prove that your partner paid the full value at the time of the transfer and has since paid the mortgage in full. You will also have to account for the funds.
"My new business is in my partners name, and all profits will be taken by my partner." This is regarded as a criminal activity by The Trustees in Bankruptcy and any assets earned during the bankruptcy will be forfeit.