Bankruptcy payments
 
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Bankruptcy payments

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(@nervouswreck)
New Member
Joined: 9 years ago
Posts: 2
Topic starter  

I wondered if you do need to make payments towards your bankruptcy then how long do they run for? Is it 4 years? Thanks


   
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TDA (Debt Adviser)
(@tda-debt-adviser)
Illustrious Member
Joined: 16 years ago
Posts: 13594
 

Hi again nervouswreck.

Many people make no payments at all after becoming bankrupt - just the application fee in the first instance.

That's because any payment is based upon an affordability assessment. If there's no money left after paying your household bills and other reasonable expenses, there's going to be no payment into the bankruptcy.

Likewise if you have no private income perhaps from a job, or from a private pension for another example. Payment into bankruptcy isn't going to be taken from benefit income.

If you do have private income, and if you are assessed to have surplus income, payments would run for a period of four years.

That payment will be reassessed periodically and can change if your financial circumstances improve or worsen.

You can read much more detail about the bankruptcy process at:

https://www.trust-deed.co.uk/bankruptcy-sequestration.html

Qualified Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds


   
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