Can someone please tell me the down side to bankruptcy.
Will I be able to keep my job and would I have to pay anything towards my debts? I have no assets, apart from a £2000 car and rent off the council. I know my name will be published in local paper and that it will cost approx £500 to file for bankrupty. Is that the only pitfalls? I also have just changed to a standard bank account with no credit facilities. Would the bankruptcy take my wages from my bank?
Unless you work in the financial services, are a Director or serve in the forces your job should be fine but I always advise clients to check their contract of employment to make sure.
you will be assesed to see what your disposable income is after all normal living costs have been taken into account and the Official Recevier will determine whether you need to make an Income Payment order, if you do it will be for 3 years but you will not be expected to pay what you cannot afford.
Names are not automatically published in local papers in some areas so check yours as they may no longer publish them.
Bankruptcy will be on your credit file for 6 years from its start. You may be asked in the future if you have ever been declared bankrupt to which you will have to answer honestly.
Your wages will not be touched - if you have to make a payment this will be set up from the beginning as a payment you make from your account. If there are proboems in your making your payments the court can arrange for the payment to be taken directly from your wages but this is not the norm.
I hope this answers your questions but do let us know if you need anything else - remember we're here for support as well as information so use us as you need to!
Regards, Tina Shortland, Debt Advisory Manager for Melanie Giles at Debt Advice TV.
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Ubless you petition close to the end of the tax year, your tax code will go to nil, so the payroll department will certainly know about it.
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Thanks everyone for your advice. Why would my tax code change to zero? Also an Income Payment Order - does that equate to my disposble income? Lastly, is there any criteria stating how much percentage of the deb your DI must be to get bankruptcy or is it just a case if your debts are more than your annual income?
Can anyone answer Lesley's question please, I would like to know this as well, is there any other reason, apart from BR, that would result in your tax code being changed to NT.
Also, why is this done, is it an agreement from the Government so that at least some money from wages go to the OR for the creditors?
PS, sorry if it is hijacking the thread.
Last edited by FormerlyST1100 on Thu Aug 19, 2010 11:44 am, edited 1 time in total.
There are two other ways to have an NT code that I am aware of. Students who work during the holidays and will not earn their full tax free allowance can sign a P38s form and this would entitle them to an NT coding.
Alternatively, if you are non resident and all of your work is carried on outside the UK you can have an NT coding even if you work for a UK based company.There may be other cases that I am not aware of.
HMRC submits a claim for the unpaid tax and the money forms part of an IPO/IPA. Someone else may know why this is done.
another reason you could have an NT code is for example if you are a subpostmaster and run this along side a convenience store, you can have this code and complete a Self Assessment Tax return to pay your tax then