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| T O P I C R E V I E W |
| Mrs Wood |
Posted - 16 December 2010 : 23:58:16
if you are declared bankrupt do you still have to pay back creditors |
| 2 L A T E S T R E P L I E S (Newest First) |
| Richard P |
Posted - 17 December 2010 : 15:31:14
Hello Mrs Wood welcome to the forum.
a debt against a property (mortgage, lein or charge) is called a secured debt, if during Bankruptcy and beyond you wish to stay in the property you should continue to pay the secured debts (on that property).
if you do not pay the secured debt it is likely that the company with the charge against the property will take action to obtain the property in order to get back some of the money they are owed
If you want to leave the property the OR may help with the sale, the property is sold and could clear the charges against that property,
in general terms any charges left over will become an unsecured debt and included in your bankruptcy.
an unsecured debt is things like unpaid credit card debt, unpaid utility bills anything which is you borrowing as a person and not against an item of value like a house.
you do not pay unsecured debts as part of your bankruptcy.
certain debts cannot be included in your bankruptcy, student loans, parking tickets, court fines and you still have to pay these
after being declared bankrupt scroll up and read the entry by housing starting you may be thinking .....
long winded answer for a question that was so simple but thought from the question that some of the terminology used may have added to the confusion
good luck Richard |
| Housing |
Posted - 17 December 2010 : 12:34:07
In essence, the unsecured debts to your creditors are contained within your bankruptcy when the order is made by the Court. So the simple answer is no.
You may be thinking about your liabilities under a Income Payment Order (based upon your disposable income) That is set on a formulaic basis taking into account your disposable income and is dealt with by the OR.
If an IPO (or IPA) is made it will last 3 years and can be amended if your income changes (up or down)
I am sure someone will add to this
Good luck, Richard
"There are no problems - only solutions" |
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