This debt solution is only accessible for residents of England, Wales, and Northern Ireland.
Bankruptcy is a debt relief wipes out most of your debts but not all of it. You might be thinking of what debts can be written off when you go bankrupt.
Debts Included in Bankruptcy
Debts that are included in bankruptcy are mostly your unsecured debts. Some of which are as follows:
- Utility Arrears
- Catalogue Debts
- Benefit Overpayments unless fraud
- Credit Card debts
- Store cards
In case you missed listing certain debts that can be incorporated in your bankruptcy, this will still be included. Besides, you must remain true to the official receiver or bankruptcy trustee whenever you missed listing some of your debts when completing the form.
Debts NOT Included in Bankruptcy
Though bankruptcy writes off most of your debts, you won’t become debt-free if you obtain debts that are as follows:
- TV Licence arrears
- Social Fund loans
- Student loans
- Debts you obtain after having your bankruptcy order in place
- Debts that are taken by fraud such as benefit fraud
- Criminal fines magistrates’ court or Crown Court involving compensation and penalties, or victim surcharges.
- Child support or maintenance arrears that were set by Child Maintenance Service or CSA
- Secured loans or credit against your home and mortgages
- Personal Injury compensation ordered by the Court
- Court orders such as payments or compensation for family proceedings like in cases of divorce
What secured debts can be included in bankruptcy?
When declared bankrupt, goods under HPA or your logbook loan will be canceled by your lender or company provider. Once they do, you must return the item or goods yet the debt will still be included in your bankruptcy. This allows you to pay nothing more.
In case you’re allowed to keep the goods under conditional sale, you may have to keep paying for it. Additionally, for mortgages and secured loans, it can be included in your bankruptcy if you surrender your property or in the event of repossession. Should you wish to stay at your home, you have to keep paying for the debt like you usually do.
Are joint debts included in bankruptcy?
A joint debt is a debt applied and agreed by two people, in which both names are stipulated in the agreement. If you have joint names with someone who is bankrupt, the debts will not be written off. Instead, you will b accountable to pay for it while the others won’t be. This means you will be solely paying for the remaining amount of the debt.