Debts Wiped Clean Following Bankruptcy

	Do you live in Scotland? As Scotland has its own legal system, distinct from that of England and Wales, laws relating to bankruptcy are different too. In Scotland, personal bankruptcy is known as sequestration.

Would you like to talk to a trained debt counsellor about alternatives to bankruptcy? more 1. Is there really "a little known piece of government legislation" that will write off up to 80% of all my debts so that I won't be declared bankrupt? 2. Will I lose my house if I am declared bankrupt? 3. Will my friends and family find out that I have been made bankrupt? 4. Will my boss find out that I have been made bankrupt? 5. Could I give everything of value to my partner or friend before going bankrupt? 6. Are there costs involved in going bankrupt? 7. Who is The Official Receiver and what will he want to know? 8. Will my bankruptcy really end after a year because of changes in the law? 9. When my bankruptcy ends will I be free of all my debts? 10. Will I be able to obtain a mortgage if I have been bankrupt?	When my bankruptcy ends will I be free of all my debts? NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so. When you are discharged from bankruptcy, you will be released from most, but not all, of your debts. For those debts that are wiped clean, creditors will no longer be able to pursue you for any outstanding amounts. Debts that you will not be released from are: 1. any money you owe under court proceedings - for example for child maintenance or debts arising from any personal injury claims against you - unless the court directs otherwise 2. court fines or debts arising from fraud and certain other crimes 3. student loans 4. mortgage payments and other secured loans - secured creditors still have the right to enforce or recover their security if payments are not met 5. debts that you have incurred after your bankruptcy order was made If you are making payments under an income payments order or another agreement you must also continue to make these payments even after you are discharged. It's also important to note that when you are discharged, any assets that the official receiver or the trustee held or claimed during your bankruptcy are not returned to you. Your trustee will still have title to your assets and will seek to sell them in a bid to pay back as much as possible to your creditors even after your 12 months as a bankrupt are up. And this could take several years. During this time you may be required to make payments from your earnings to your trustee. Your most important asset is likely to be your home, or your share of it if it is jointly owned. If it has not been sold within three years of you being declared bankrupt, it will be returned to you unless your trustee has applied for an order to prevent it being returned.

Would you like to talk to a trained debt counsellor about alternatives to bankruptcy? more

1. Is there really "a little known piece of government legislation" that will write off up to 80% of all my debts so that I won't be declared bankrupt?

2. Will I lose my house if I am declared bankrupt?

3. Will my friends and family find out that I have been made bankrupt?

4. Will my boss find out that I have been made bankrupt?

5. Could I give everything of value to my partner or friend before going bankrupt?

6. Are there costs involved in going bankrupt?

7. Who is The Official Receiver and what will he want to know?

8. Will my bankruptcy really end after a year because of changes in the law?

9. When my bankruptcy ends will I be free of all my debts?

10. Will I be able to obtain a mortgage if I have been bankrupt?

When my bankruptcy ends will I be free of all my debts?

NOTE: If you have serious problems with debt and are considering bankruptcy, it is important that you seek professional advice before doing so.

When you are discharged from bankruptcy, you will be released from most, but not all, of your debts. For those debts that are wiped clean, creditors will no longer be able to pursue you for any outstanding amounts.

Debts that you will not be released from are:

1. any money you owe under court proceedings - for example for child maintenance or debts arising from any personal injury claims against you - unless the court directs otherwise

2. court fines or debts arising from fraud and certain other crimes

3. student loans

4. mortgage payments and other secured loans - secured creditors still have the right to enforce or recover their security if payments are not met

5. debts that you have incurred after your bankruptcy order was made

If you are making payments under an income payments order or another agreement you must also continue to make these payments even after you are discharged.

It's also important to note that when you are discharged, any assets that the official receiver or the trustee held or claimed during your bankruptcy are not returned to you.

Your trustee will still have title to your assets and will seek to sell them in a bid to pay back as much as possible to your creditors even after your 12 months as a bankrupt are up. And this could take several years. During this time you may be required to make payments from your earnings to your trustee.

Your most important asset is likely to be your home, or your share of it if it is jointly owned. If it has not been sold within three years of you being declared bankrupt, it will be returned to you unless your trustee has applied for an order to prevent it being returned.

© Bankrupt.co.uk 2009. All rights reserved. Please note the contents of this website are for information purposes only and do not constitute financial advice. Please seek independent professional advice before taking action that may affect your financial well-being.