Hi ! Can anyone tell me what crieria the judge uses to decide if you are insolvent and hence eligible for bankruptcy? ..in my cae I am now unable to keep up with my monthly repayments on my credit card debts (currently about £2k per month) but have excess disposible income of about £1k...I dont have any assets and so I am happy to go bankrupt , clear all and make a fresh start..would the judge force me into an IVA ? Can they do this? or do they just content themselves with 36 months of Income Payment Order for the excess disposible I have?
The usual measure for insolvency is being able to pay your debts when they fall due.
Therefore by the information above you are technically insolvent.
The judge ( which court are you at ? ) is highly likely to ask you if you have taken advice and considered all the options ( dmp, iva, etc etc etc ) and it would be good to be able to say you have explored then options, spoken with a professional expert and understand the consequences.
With that you will be OK
Paul Johns Bankruptcy Specialists Reviva UK www.revivauk.com 08454 751 851
Criteria used to decide insolvency ?
Posted - 26 January 2011 : 22:41:46
