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Bankruptcy #1 - What Happens When You Choose This Path



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hi again and welcome to my channel now

had a few requests to do a video about

the bankruptcy process

it's quite an in-depth process there's

quite a look to it so I'm gonna do this

over a few videos so this is gonna be

part one of the series of these videos

are going to be doing this particular

video would be an overview video the

other videos like I said are going to be

more detailed you're going to learn

things like how you can keep certain

assets what happens to your house

whether or not you can keep your house

etc etc now before I get into this I'm

going to be straight with you I do not

recommend this process to anyone because

it can affect you more than a lot of

people think it can ultimately is your

decision whether you go down to it or

not but I know what I'm talking about

when it comes to areas like this let's

go let's start with eligibility what

does it take for a person to be able to

go down this bankruptcy route if you

cannot afford to pay with debt so you

can make yourself back up at any time

it will cost you six hundred eighty

pounds to make yourself bankrupt but

understand you're committing financial

suicide

anyone who has contacted me with this

thought in their mind of making

themselves bankrupt I have always

stopped them from going down this route

one thing you should definitely not do

is go to an insolvency practitioner

third place it is like going to a car

salesperson and ask in this car

salesperson if you should buy the car

they setting off them or not creditors

ie people you have money to can apply

for your bankruptcy if you owed five

thousand pounds or more they have to pay

the large amount in order to make you

bankrupt I'm going to go through the

process of how they do it in a separate

video

in my opinion this is the only way you

should ever be made bankrupt why pay me

to make yourself bankrupt when someone

else will pay an insolvency practitioner

can make you bankrupt if you break the

terms of your IPAs which is why I did

the video why you should not get into an

idea I'll put a link in the description

box below

the point of IBA I have had people

message me saying well isn't it good if

you get into an IV of five years or your

desiccate now if you have a debt problem

you need to understand that that problem

is not the result of how much money that

you owe to people it is the result of

how you manage money so getting into an

IBA will not solve your debt problem all

it will do is help you deal with certain

debts that are owed so with that thought

in mind you have to understand if you do

get into an IBA and you still have a dip

I II a problem with managing money and a

problem of getting yourself into debt

you have five years where you cannot for

one second break the terms of an

agreement

you can't not pay the insolvency

practitioner not even for one month

because if you do they will make you

bankrupt and they wouldn't bother them

at all okay moving on let's say you've

applied to make yourself bankrupt you'll

be contacted by an official receiver and

the official receiver will ask you to

come in for an interview or what the

interview will be done over the phone

what will happen is they will try to

ascertain what lid to your bankruptcy

that is pretty much lip service what

they really want to do is ascertain what

assets that you have you're obliged to

tell the official receiver any assets

that you have if you try to hide in need

of your assets and the official receiver

suspects that you are you may face an

examination in court if it's an

insolvency practitioner that's looking

at your bankruptcy do bear in mind they

get a kick out of finding hidden assets

the next step will be for you to handle

all your assets to the official receiver

or the insolvency practitioner whichever

route that you wind down by the way the

official receiver is an officer of the

court what will happen is they'll become

trustees of your assets your bank

account your house and whatever other

assets that you handed over to them

meaning they're in charge of your assets

you're usually allowed to keep things

that you need for work like your tools

and your vehicle and also certain

furniture

bed so for tipping jets I say usually

because it is down to the official

receivers or the insolvency

practitioners discretion whether you

keep it or not and you may not keep it

if they believe that you can get a

decent replacement for cheaper so if

what you have is worth more than a

decent replacement

your bank card checkbook credit card all

of those would be handed over to the

official receiver and your bank accounts

will be frozen any way that you might

urgently need for survival to buy things

like food medication the money might be

released by the official receiver in

order for you to obtain it if you have a

joint account the official receiver may

release your cart to share over the

money in the bank account if I were you

and you were going down this route I

would make sure the money is removed

before because it can get a bit messy

you might have to prove that this their

money etc etc so you don't really want

to be in this situation you will

essentially be treated like a child and

lives

the official receiver allows you to

still access your bank account and by

the way do know the pensions may be

classed as an income so it may be

included into your assets during this

bankruptcy okay now I'm going to move on

to bankruptcy restrictions you will not

be a devolver more than 500 miles off

anyone without telling them that you'd

be made bankrupt so if you need to

borrow 510 pounds from your friends to

go to Ibiza you have to tell him all

that that you'd be made backup you

cannot act as a director of any company

without the court's permission so if

you're looking at setting up the next

Apple you're gonna have to put that on

hold you cannot create you cannot manage

you cannot promote a company without the

court's permission you know when I get

contacted by some people about making

themselves bankrupt I always think that

they don't really know what they're

getting themselves into you cannot

manage your business using a different

name without telling the people you're

doing business with that you be made

bankrupt so if you're looking to go by

the name of Ironman or kink or death

here until the dust settles you still

have to tell the person that you'd be

made bankrupt you'll also find that when

people hear that you've been made

bankrupt they get very reluctant to deal

with you when it comes to business I

love this one you cannot become an

insolvency practitioner if you be made

bankrupt it's like they believe that

someone who's been made bankrupt

automatically think hold them I enjoyed

the experience so much that I decided to

get into the business myself I guess you

can't be too careful these restrictions

are generally in place unto your

bankruptcy ends basically when you're

discharged this usually takes around 12

months from the date that you're made

bankrupt also do know you'll be put on

anything solvency registered which is

public so anyone can access it so if

you'd be made bankrupt or you in an IBA

you appeal on that register just so

you're aware if you go down the

bankruptcy route not all the debts that

you overwritten odd so if you think you

can just walk away clean or nothing you

need to listen on secured creditors like

if you own the house will still need to

be paid directly by you quiet bet for

your bankruptcy now whether this

continues or Hellenic continues for

depends on what happens to your house

after you be made bankrupt I'll go into

the home and bankruptcy in part 2 of

this series court fines child

maintenance Sheena learn

none of those are written off as well as

debts arisen from a fraud and also any

personal injury damages that you may be

in order to pick the only way that any

of these could ever be written off is if

a judge approves it which is highly

unlikely as I mentioned before twelve

months on the date that you be made

bankrupt you are discharged from your

bankruptcy you're back at the end

however this is not always the case

because if you've been uncooperative

with the official receiver or the

insolvency practitioner all you try to

hide in the assets your bankruptcy can

be extended so if you want to do

anything like the rapper 50 cent they

make you sell bankrupt bingo on

Instagram showing steps of money you

will be put before the court in order

to explain yourself in his case he had

to tell the court that all the money was

free it was just prop money very awkward

not a smart idea understand even though

after the 12 months you're discharged

from your bankruptcy the mark still

stays with you it's long lasting it'll

be on your credit card for six years

anything that you need to post pay for

ie pay you after receiving an invoice

from contract utility bills car

insurance all of these will be affected

you will find that no one allow you to

do it they want you to pay upfront so

you need to think really hard before you

go down this route as I said to you

before there is so much to this area and

this is only part one I don't want to

put it all in one video because it's a

lot of information to digest so when I

put the series out you can go back to

certain videos in order for you to check

the information again and give yourself

a Morgan understanding so you definitely

want to make sure you're subscribed and

also turn on the bill notification I

hope you found this video helpful and if

you're in a situation where you're at

the crossroads and you don't know

whether to go down the bankruptcy room

or not go down the bankruptcy route I

strongly advise you to really think hard

about it as I said more videos are

coming out so it makes you what all of

them before you even make the decision

if you like this video please make sure

you hit the like button got any comments

in the comment box and I'll see you in

the next video thanks for watching

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