tactical trader

The over indebtedness of many in the UK and USA only just seem to be hitting home with the media.

We are starting to see their awareness through shock headlines such as '1 million expected to file for bankruptcy'.

Now, anyone who reads around will have known this for ages and could see it coming - but, as ever the general populus are blind until shown the light by the press.

Hopefully nobody will have enough debt on here to be considering going bankrupt, but out of interest i thought i would post the contents of a recent marketing email i received from equifax.

5 bankruptcy facts everyone should know...

1. Bankruptcy is NOT an easy option
   It’s true that your bankruptcy could be discharged within 12 months but you may not be able to get credit again for up to 6 years. And even then you’re likely to pay a lot more to borrow money, because you represent a greater than average risk to a lender.

2. It actually COSTS money to go bankrupt
   You need £460 to cover court costs and the Official Receiver’s fee – and it has to be paid in cash.

3. You STILL have to pay your creditors even if you go bankrupt
   If you have any assets, such as a house, they may be sold to pay your creditors. If you are deemed to have more monthly income than you need to live on, some of the surplus may also be paid to your creditors for up to three years.

4. You CAN’T keep bankruptcy a secret
   Bankruptcy orders are published in the London Gazette and local newspapers. The information is also displayed on the Individual Insolvency Register – which is accessible on the internet – for a period of 3 months after you are discharged.

5. Your CREDIT file is affected for 6 years
   After bankruptcy you are likely to find it difficult to get credit – including a mortgage, loans, credit cards – even a mobile phone.