anyone know much about declaring bankrupcy ?

a mate of mine wants too.... hes just had a kid (no its not poision) and his det is about 3 times what he earns.... all credit cards, and he has no assets....

but he has a few thousand in the bank that he inherited, and he wants to keep that hiddern...

normally i wouldent get involved... but hes a good guy and like i said, hes just had a kid, so if he can keep that money hidern all the better to him.

any way he can do it ?

Im telling him just to draw it out of the bank and act like he payd off a debt he had to someone / give someone a cheque and get them to cash it for him so he can say it was a debt he payed etc...

any input anyone ?
(googling now, just thought id see if anyone knows anything on here first!)

You can also try consolidating the debts. If you have one big debt instead of many small ones, you can end up owing about half as much, as the interest rates on big loans are better.

the problem is, hes waited too long, and its too late for him to get himself out of it without doing something like this

(he owes about 26k all on credit cards)

I didnt have much time to talk to him before, Ill have another chat.... Im telling him he should phone up all the CC companies and tell them how screwed he is, and maybe theyll freez intrest / cut min payments.... its better for them in the long run anyway!

with 26k of debt, 2k of cash in the bank and under 10k a year income, yeah he shouldent have spent it, but that doesent mean he has to f**k up the rest of his life because of a few silly mistakes.

Tell him to go and see an advisor before he does anything else. Citizens Advice should poke him in the right direction.

As plenty of companies are pushing on TV, if you have loans above a certain amount - and you cant replay them, then you can get them negotiated down to a more realistic level. Getting the debt off the credit cards is probably a good idea but first seek advice.

Id get it out of the bank system asap.  Not in the form of one big withdrawl.  Trickle it out as if hes buying stuff or paying bills.  Then go and file.

Actually Id just try and consolidate and use the money to pay some of the debt down instead of going bankrupt but if hes intending to declare bankrupcy and commit fraud then trickling the money out of his records into cash under the mattress would probably be the way to go.

Shouldnt take many small withdrawls to get 2k out the bank.

If he takes bank ruptcy itd take 6 years for it to go off his credit rating and then would find it very difficult to get credit on anything.

Say if he owes £1000 to one company, he could write to them and ask if theyd accept 60% to write the debt off maybe, this way hed use the money hes inherited and his credit rating would be able to get stronger than bank ruptcy.

It also costs £400 to declare youre bankrupt Ive heard.

not true anymore.

a close friend went bankrupt a few weeks back

shell get a credit card or mortgage in 2 years if needs be.

it cost 800 quid as she wanted someone to attend court with her in case the judge asked stupid questions.

she used soemone like action4debt. they do it all for you, for a fee of about 300 quid.

Matt

He shouldnt have spent money he didnt have.  Tell him to pay up.

lets see you say that in 10 years. Life is an expensive hobby.
Unless your still living at home in 10years still suckling on your mother tit.