What is personal bankruptcy?

mickm86

can you still hold your job if you suffer personal bankruptcy? any other details would be great. just trying to understand it thanks

monkeypants

I would have thought so. How are you supposed to pay back anything if you're not allowed to work? However, I think that your income is severely restricted.

Marcusm

mickm86 wrote: »

can you still hold your job if you suffer personal bankruptcy? any other details would be great. just trying to understand it thanks

Yes, provided it is not a job which carries the condition that you not be an undischarged bankrupt. Some financial sector and professional jobs will contain provisions like this. Doesn't mean you can't work elsewhere, just not in those roles.

Victor

Moved from Accommodation & Property

Please note the new charter - you may not ask for or offer legal advice.

Moderator

Peregrinus

Yes, you can keep your job unless, as others have said, it's a term of your employment contract that you not be bankrupted. As a bankrupt, you can't act as a company director, manager or auditor (without court permission).

The court will determine how much of your earnings from your job goes towards your creditors, and how much you get to keep to support yourself and your family.

Shield

User closed account for some reason...

teacherhead

Shield wrote: »

User closed account for some reason...

Apparently you cant keep your boards account if youre bankrupt.

Resde

Peregrinus wrote: »

Yes, you can keep your job unless, as others have said, it's a term of your employment contract that you not be bankrupted. As a bankrupt, you can't act as a company director, manager or auditor (without court permission).

The court will determine how much of your earnings from your job goes towards your creditors, and how much you get to keep to support yourself and your family.

Do you get to keep your house if you own one?

the world wonders

Resde wrote: »

Do you get to keep your house if you own one?

If you own a family home, by yourself or with another person, the Official Assignee may only sell it with the prior permission of the court. Where this permission is sought, the court will balance the interests of your creditors against the interests of your family and may decide to postpone the sale of your home.

If you hold property jointly (for example, with your spouse) your bankruptcy will cause the joint ownership to be split between the Official Assignee and your non-bankrupt co-owner

It's up to the court. Guessing that they are more likely to let you keep a modest three-bed semi than a McMansion.DO NOT LISTEN TO ME, TALK TO A SOLICITOR

Resde

the world wonders wrote: »

It's up to the court. Guessing that they are more likely to let you keep a modest three-bed semi than a McMansion.

Ok, here's where I'm coming from. I'm going to civil court and wondering will I be made sell my house if I lose the case? It's a very modest house and still have a mortgage to pay. I have no other money or assets. The court cost will probably be six figures.

NoQuarter

Have a read about the functions of the Personal Insolvency Act guys, might not be a need to go bankrupt anymore.

the world wonders

Resde wrote: »

Ok, here's where I'm coming from. I'm going to civil court and wondering will I be made sell my house if I lose the case? It's a very modest house and still have a mortgage to pay. I have no other money or assets. The court cost will probably be six figures.

You should ask your solicitor before you do anything that could put your home at risk. If you rely on the advice of random anonymous internet idiots (like me) you are likely to lose your home.