Hi,I'm currently a Part 20(third party) defendant in a civil case and the matter goes to trial in June. It's looking like I'm going to lose and I have accepted this, I'm 26 so I'm relatively young enough to recover from this.The consequences of losing is that I will have to declare bankruptcy as the legal costs have spiralled out of control.I'm in a joint tenancy agreement with my girlfriend - will we be asked to leave? I have never missed a single rental payment in the 5 years I've rented.I own a £10,000 Mini Cooper S - from what I've read you're allowed a car up to £2,000. Is it possible for a relative to loan me the £8,000 in valuation difference to pay the Official Receiver in order to keep the car?And what possessions would the OR be looking to take. Are my guitars (I'm in a band and earn as a side income), mobile and laptop at risk - all things I need for work?Is it usually the case that after 6 years my credit file will be clean, as if the bankruptcy never happened and I can apply for mortgages etc.Thank you
State/Country relating to question: United Kingdom
HiThank you for your question and welcome back to Just Answer.How much is the order against you likely to be?What does your AST about termination? There should be a provision in the AST that addresses the insolvency of a party.Kind regardsAJ
I'm looking at an order of around £70,000. £25,000 of unsecured debt and the remainder being from the Civil Court case.I haven't located my tenancy agreement yet, but I will obviously check this. But from what I've read online we should we allowed to remain at the property as our rental payments are always paid on time. Or is this incorrect information?And what about the other points raised in my initial question?Many thanks
Just checked the AST and nowhere does it mention insolvency.Thanks
Hi,Thank you.Firstly you should be able to keep the mini so long as the Official Receiver/trustee in bankruptcy agrees to it and the funds for it come from a third party.Can you check your AST again and tell me if it says any where that you and your girlfriend are Jointly and Severally liable?Is bankruptcy absolutely unavoidable? In the future it will cause you significant problems in terms of obtaining credit and being a company director. Generally bankruptcy are discharged after one year.I look forward to hearing from you.Kind regardsAJ
Hi,I don't see anything in the AST where this is stated.As I'm about to lose a Civil case it will put me in significant debt and therefore it's unavoidable unfortuntately. I'm aware it will ruin my credit history - but after 6 years will my credit history be 'clean'? As if nothing ever happened? And how long would I be disallowed from becoming a Company Director?Many thanks
Hi,You wont be able to be a director for the entire period of your bankruptcy. When you are discharged you will be able to take up directorship, unless the secretary of states issues a disqualification order against you. To have a disqualification order you would have had to have previously behaved improperly while holding office.In relation to your AST it is difficult to be certain without seeing but as long as the rent is being paid every month the landlord probably wont look to get rid of you. Sometime bankruptcy can result in forfeiture of the lease. If you alert the landlord to this they will either be ok with it because the rent is still being paid or possible other scenarios they may demand you provide them with a guarantor.I look forward to hearing from you.Kind regardsAJ
2 Years Insolvency Litigation
Thank you for the information, just one more thing:but after 6 years will my credit history be 'clean'? As if nothing ever happened?Many thanks
Thank you for the information, just one more thing:but after 6 years will my credit history be 'clean'? As if nothing ever happened? Many thanks
Hi,Thank you for the accept.The bankruptcy will be wiped 6 years from the date you were made bankrupt providing it has been discharged after a year.Do not forget though that some applications may require you to disclose whether you have ever been bankrupt regardless of when it happened.Kind regardsAJ
Thank you very much for accepting my answers.Please let me know if I can be of any further assistance.Kind regardsAJ
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