I have been bankrupt before...

frenchfood · Joined: 18 Jun 2007 Posts: 2

hello there.

i have a bit of a problem. i went bankrupt about 8years ago and am now in £38,000 worth of debt. I know some people will read this and think i am stupid and i have to agree but the fact of the matter is, i do not know which way to turn. can i go bankrupt again? can i do an IVA? i was talking to someone in the pub about it the other day and they have said that i will be put in prison? is this true......?

Please help me

Steven · ClearDebt Advisor Joined: 04 Dec 2006 Posts: 3

First of all you will not go to prison because of a second bankruptcy - this will only happen if you have been extremely naughty with your financial affairs and there is an edge of criminality involved.

You can do an IVA although this is only for debt incurred after your first bankruptcy (you cannot propose an IVA for debt in your previous bankruptcy now that you are discharged).

If you go bankrupt then you may be subject to a Bankruptcy Restriction Order "BRO" (or Undertaking "BRU"), which in basic terms imposes the restrictions of bankruptcy but you are not actually bankrupt.

The BRO can last between 2 to 15 years depending on the reasons why you were made bankrupt.

The difference between a BRO and BRU is that a BRO is where an order is obtained through the court and a BRU is where you have given an undertaking for the restrictions to be imposed.

In your case you might be subject to a BRO/ BRU although I would not expect the restriction to last more than 2years, if at all, if the debt has been created by overspending of credit cards and loans.

I hope the above has been helpful - please fill in the ClearDebt Analyser to find the most suitable method for you to be clear of your debts.

hard-times · Joined: 23 May 2007 Posts: 3 Location: LIVERPOOL

how do you know if you have an BRO or a BRU?

Steven · ClearDebt Advisor Joined: 04 Dec 2006 Posts: 3

A BRU is agreeing with the Insolvency Service to the making of a restriction thus reducing the costs and expenses of going to court for a BRO.

It is highly likely that you will get a lower restriction if you give a BRU then going to court for a BRO.

frenchfood · Joined: 18 Jun 2007 Posts: 2

thank you Steven,

that is a weight of my mind!!! I shall get on to sorting my financial situation, using the advise you have offered.

thanks again,

FF

beast · Joined: 10 Mar 2008 Posts: 2