How long to become bankrupt?

A question about : How long to become bankrupt?

Hi there,

Just wondered if anyone could give me some advice -

I've been out of work for a few years now as I suffer from M.E. Have quite alot of debt as I was just finishing my degree when I became ill. Have been unable to repay any debts since August last year and am now just paying Ј1 a month to my creditors (my only income is incapacity benefit).

What I'm wondering is how long it is likely to take for my creditors to serve the court order that I think I need to begin bankruptcy proceedings. Obviously it's quite an anxious time waiting for it to happen when nothing seems to be. I don't know if all my creditors are hanging on waiting to see if I go back to work or what. Is it the case that they are only likely to serve court papers if they think there's money to be got out of me??

I am married but all my debt is in soley my name and our mortgage is in my husband's name. Also, I live in Scotland, and I believe it's called sequestration here.

Any advice would help, thankyou

Best answers:

• Well there's currently no point them making you bankrupt as benefits are not classes as income that can be used to pay creditors when it comes to iva's bankruptcy etc. Do your creditors know your income details at the moment?
  At the moment if you were made bankrupt all it would be save you the fees doing it yourself as you wouldn't be made to pay anything towards you bankruptcy as you aren't earning an income as such.
• Have a look at the Bankruptcy Club thread - you'll find lots of advice there.
• in england...i'm not sure about scotland, you can apply to be make yourself bankrupt..it cost 450
  or your creditors can apply to make you bankrupt.
  however, if you have no assetts, in general your creditors wont make you bankrupt as they have nothing to gain and it costs them money.
  perhaps you could tell us a little more about your circumstances and why you expect to be made bankrupt or what court proceedings you expect your creditors to take before you can apply yourself..
• Hi Emmiemac
  We declared ourselves BR or sequestrated ourselves last year.
  We took advice from a company and if I recall correctly you need to have been served with court papers from one of your creditors - we had and that is why we where able to sequestrate ourselves - I will have a look and see if I can find anything else about it. It cost us Ј63 pounds each to declare BR - the papers where taken to court on 7th October and we where declared BR on 27th October.
  I will try and find out some more for you
  HTH
  Ang
  x
• Emmiemac
  This is the website of the company that we used to help us with our papers etc - you wouldnt need to use them as such as you don't have any assests - there is information on these pages of what you can do
  https://www.debt-help.biz/trustdeeds.asp
  https://www.clear-your-debt.co.uk/Sequestration.htm
  This site shows under what reasons you can declare yourselve BR
  Ang
  xx
• Is there any way the creditors can go after the house as they are married.
• So thats basicaly a yes. It does seem fair. I've never understood the his and mine attitude when you are married. I could be debt free within a couple of months if I didn't count the debt in his name.
• I agree with you - my OH are not married yet but we share everything - there is no mine or yours but the Trustee would only be interested in the OP share of any equity and this can be minimalised in many ways so that the home is protected and a minimum amount is paid to the Trustee for them to relinquish their Beneficial Interest
• For a good over-view on sequestration, go to:
  www.payplan.com/sequestration.php