Bankruptcy Debts Written off
When you are declared bankrupt, assets owned by you might be used to pay off your debts. After one year all of your outstanding debts are written off and you can make a fresh start in your life.
Usually, a bankruptcy petition is presented either by a creditor who is individually or jointly owed £750 or more, or the debtor themselves.
The bankrupt faces risks to current and future assets as their estate is seized to be sold off and distributed to pay off their debts. They are also subject to numerous business and financial restrictions during the term of the bankruptcy (a minimum of one year).
Debts that will not be written off by a Bankruptcy are referred to as ‘Non Provable in Bankruptcy’.
Non Provable debts can still be pursued by the creditor despite a Bankruptcy Order having been made.
Examples of Non Provable Debts are:
- Court fines such as maintenance orders, Child Support Agency payments and any other fines made through family courts.
- Any debts included in the bankruptcy which were connected with fraud.
- Student Loans.
- Any debts connected with or arising from personal injury claims.
- State benefit overpayments.
- Secured Creditors.
Bankruptcy is an extreme consequence of serious debt and should not be entered into lightly or voluntarily until all alternatives have been fully explored.
Unless you have previously been bankrupt, your Bankruptcy will usually last no more than 12 months but you will be subject to a number of restrictions during this time. Your trustee will also advertise details of your Bankruptcy in a local paper and inform a variety of interested parties of your Bankruptcy .
