New figure from the Insolvency Service indicate record levels of insolvency for 2009.
It is important to remember that bankruptcy does not clear all debts. There are several that you may still be liable for, even after you have been formally discharged from your bankruptcy.
Debts Not Written Off by Bankruptcy
Any monies requested by the Child Support Agency (CSA) for claims of child support, or any other orders made in a domestic or family court will not be covered by a bankruptcy order.
If you have received an overpayment in benefits before the bankruptcy order, if there is a decision to seek to recover them after you have been made bankrupt then you will still need to repay the money after you have been formally discharged form your bankruptcy. If they try to recover the money before the bankruptcy order then the debt can be included in your bankruptcy petition - except in the case of fraud.
You are responsible for paying your council tax for the remaining tax year unless you receive a final demand or liability order.
If the asset that provided security was sold towards your bankruptcy estate, and did not cover the total amount owed, then the debt is no longer regarded as secured and as such cannot be imposed.
There are two types of Government student loan in the UK - neither can be written off by bankruptcy. The first one is the older ‘mortgage-style' loan made between Sep 1990 and Aug 1998. These are repaid directly to the SLC (Student Loans Company) by direct debit and have never been covered by bankruptcy. The second type was introduced in 1998, known as income-contingent loans, and are paid through the tax system once the student graduates. For a short period it was possible to write these loans off through bankruptcy due to a loophole in the law, but the hole was quickly closed. These loans will be deducted from you once you reach a certain income status, and will be taken in accordance with the amount you earn. As such, if you file for bankruptcy, you will still be required to pay off any student loans.
You cannot include any court fines for any offences in your bankruptcy.
Any debts you may have accrued from personal injury claims being made against you are not permissible in a bankruptcy petition.
All debts that stem from committing fraud are not covered by bankruptcy.
You cannot include any last-minute credit, as it is considered as flagrant disregard for the credit agreement.
You may be liable for interest on any of the afore mentioned debts.
For more information on filing for bankruptcy or other debt solutions, please click on the relevant links below.
Being discharged from bankruptcy
Trust Deeds (Scottish Residents Only)
To discuss bankruptcy or any other debt solutions, please call 1Stop Money on 0800 012 4039 or fill in the online form and a 1Stop Money broker will contact you as soon as possible.
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