CrashDive Posted August 7, 2006 Share Posted August 7, 2006 So, who are these 'VI's'? Banks and other's who provide easy credit etc It's clearly in their interest to magnify hugely the inconveniences of going bankrupt. However, the reality is for those in severe financial difficulties, Bankruptcy for most of them will be their best option. For many in moderate difficulties it may still hold true. The VI's are concerned that this reality will become common knowledge for obvious reasons. http://www.debtquestions.co.uk/forum/index.php http://www.theba.org.uk/ Quote Link to comment Share on other sites More sharing options...
I'M WITH STUPID Posted August 16, 2006 Share Posted August 16, 2006 just found out as well - the year you are made bankrupt you dont pay any income tax - you're given a special NT (No Tax) code apparently! - so if you're declared bankrupt in March you'll get 11 months tax refunded as well as all your debts written off. Quote Link to comment Share on other sites More sharing options...
CrashDive Posted August 16, 2006 Share Posted August 16, 2006 just found out as well - the year you are made bankrupt you dont pay any income tax - you're given a special NT (No Tax) code apparently! - so if you're declared bankrupt in March you'll get 11 months tax refunded as well as all your debts written off. Thats right you don't pay tax but the Official Receiver will likely want some or all of any refund and/or income above the expenditure level you have agreed. Best not to try and pull a fast one as the OR can make life pretty difficult if s/he wishes. Expenditure levels if thought about can be pretty generous and for many people will take them up to their total income levels and they will not have to pay the OR anything. http://www.debtquestions.co.uk/forum/index.php http://www.theba.org.uk/ Quote Link to comment Share on other sites More sharing options...
I'M WITH STUPID Posted August 16, 2006 Share Posted August 16, 2006 Official Receiver will likely want some or all of any refund and/or income above the expenditure level you have agreed. I thought the whole reason for bankruptcy was you just walked away. what's all this about 'agreed expenditure levels'? Confused.com Quote Link to comment Share on other sites More sharing options...
the_duke_of_hazzard Posted August 16, 2006 Share Posted August 16, 2006 Yup, well the bank I work for does anyway, there is a question at a point in the process that asks "Have you ever been bankrupt?". If answered Yes you will be declined, doesn't even bother going through credit scoring to make a decision if Yes (If you lied and answered No credit scoring would pick it up). Why ask then? Quote Link to comment Share on other sites More sharing options...
Odin Posted August 17, 2006 Share Posted August 17, 2006 Why ask then? Isn't that obvious, so the bank doesn't waste any more time with the bankrupt tieing up a bank representative during the application and the bank doesn't or have to pay an external party to get a credit score when it knows it wont make the grade. To the point about the 6 years and slate cleaned, is there anything to legally stop a financial instituion from keeping old records forever. It would be difficult to go 6 years of your life without approaching a financial institution or two for something, when they pay equifax for a credit score there is nothing to stop them keeping the results on record at the banks computer system longer. So if you appaoch that bank again in 15 years time they may very well have that old record on file at the bank. Quote Link to comment Share on other sites More sharing options...
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