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WHAT
DOES GOING BANKRUPT MEAN?
CAN A local council make an individual bankrupt for not
paying their council tax? Will anyone know if you have gone
bankrupt? Does it show on your credit file? Will it affect your
ability to get a job?
Government figures show that 23,251 people in England and Wales
became insolvent in the first 3 months of 2006 – a 73% rise compared
to the same period in 2005. And Equifax, the instant online credit
information provider, is concerned that many consumers do not
understand the implications of going bankrupt, thinking that it’s an
easy way out of debt with no real consequences.
Neil Munroe, External Affairs Director of Equifax comments:-
“The 2002 Enterprise Act means a bankrupt’s debts can be written-off
after 1 year instead of 3. This has led to a number of people
struggling with debts to see this as an attractive option to wipe
the slate clean. However, we are concerned that some people may not
realise that the record of bankruptcy will remain on their credit
file for 6 years. It is crucial, therefore, that consumers are
aware that it can have quite a long-term impact on their life.
Lenders use an individual’s credit file when assessing applications
for credit or loans. Bankruptcy could result in them either being
declined or paying a premium. It can also affect their ability to
get a job, and even get have a mobile phone. We are presenting
consumers with the facts, so that they go into bankruptcy with their
eyes open.”
Bankruptcy – the facts:- You won’t have to pay your creditors if you go bankrupt. Wrong,
if you have any assets (such as equity in a house), they may be
sold with the proceeds going to the creditors. Your monthly income
will be assessed and if the insolvency examiner finds you have more
than you need to meet basic living requirements, a proportion of the
surplus will be paid to creditors for a period of 3 years.
Your council can’t make you bankrupt if you don’t pay your council
tax. Wrong, YOU can be made bankrupt if you owe a minimum of
£750 unsecured debt and that could include arrears on your council
tax.
It costs nothing to go bankrupt. Wrong, it costs £460, a fee
paid at court covering court costs and the Official Receiver’s fee.
They do not accept cheques or credit cards, cash only.
Other people won’t know that you’re bankrupt. Wrong, bankruptcy orders are a matter of public record. They are advertised
in the London Gazette and a local newspaper. The information is also
displayed on the Individual Insolvency Register (accessible on the
Insolvency Service website) for a period of 3 months after you are
discharged.
You can keep your car if it’s worth less than £3,000
Wrong... the value of your car is irrelevant when it comes to
deciding whether it will be sold to pay your creditors. If your car
is essential for work and worth more than around £3,000 but you
can’t find another person to pay for the excess value, the car will
be sold and you will have to buy a cheaper model with the surplus
cash going to your creditors.
If you’re bankrupt and come into some money i.e. win the lottery or
get some inheritance you get to keep it all. Wrong, you have
a legal duty to inform your trustee of any assets acquired after the
date of your bankruptcy. The trustee will then claim all the money
you have gained. The money will be released only after all costs and
debts are paid, including any interest you owe. You could then apply
for a bankruptcy annulment on the grounds of payment of debt in
full.
The restriction on you while in bankruptcy lasts 12 months.
Wrong, if you do not cooperate with the Official Receiver or your
trustee the court can make an order to suspend your discharge from
bankruptcy until you cooperate. So you can be bankrupt indefinitely.
There is also the possibility of the court making a bankruptcy
restriction order against you if you are found guilty of misconduct
(for example, getting a loan with no intention of paying it back
just before your bankruptcy). Under such an order most of the
restrictions placed on you during bankruptcy remain on you for an
additional 2 to 15 years.
Bankruptcy is an easy option. Wrong – Recent changes to
bankruptcy law have reduced the period that most people have to
remain bankrupt before they are discharged, but you will lose almost
all your assets and are likely to pay a lot more when you borrow
money once you are discharged because you represent a greater risk
to the lender.
You can have a fresh start in a new job. Wrong – It is now
common for many large companies, especially those in the financial
services industry and those working in areas that require high
levels of security, to use credit information as part of an
individual’s reference. Bankruptcy on an individual’s credit file
could have a negative impact on the employer’s decision.
Once discharged you will be able to gain credit again. The
fact you were bankrupt is held on your credit file for 6 years.
Lenders use credit information to make lending decisions, which
could make it difficult for you to obtain credit including mortgage,
mobile phone, loans, and credit cards.
For further information or to obtain an instant copy of your credit
report visit
www.equifax.co.uk. |
Pupils Take Strides to Independence
POP superstars, World Cup footballers and children wearing
crazy hats will be putting their best foot forward on the way to
school next week. They are all taking part in National Walk to
School Week (22-26 May).when a record number of pupils and parents
from Liverpool schools will be making an extra effort to walk all or
at least some of the way to school.
Schools have come up with several ideas - including rewarding pupils
who dress as their favourite pop stars or wear football kit on their
way to school - to encourage pupils to walk instead of ride to
school. And parents are also being encouraged to leave their
cars at home instead of joining in the school run.
This year the Walk to School campaign is focusing on promoting the
benefits to children's independence and learning while they walk to
school.
"Schools are using their imagination and are going to have a
lot of fun during the week, " said Councillor Peter Millea,
Executive Member for Regeneration and Transport. "However,
encouraging children to walk to school is not only promoting health
and encouraging a more environmentally-friendly approach but also
helps them to feel more comfortable and safe outside on their own."
Among the ways Liverpool school are participating are:
Windsor Community Primary School will be holding a 'Superstar Day'
where children can walk to school dressed as their favourite pop
star, the best outfit will be judged and there will also be a talent
show. They will also be presenting a 'Golden Boot' award to
the class which has walked the furthest during the week.
Rudston Infants School are linking Walk to School Week with the
World Cup by allowing pupils to wear football or any other sports
kit if they walk to school on Wednesday 24 May, and learning about
the different countries which England will face in the tournament.
Sudley Infant School are having a 'Wild Hat Day' when walkers
can wear their favourite or craziest hat to school, a Compass Day
where pupils dress in different colours depending on which direction
they walk to school from, a poster competition and a chance for
parents to share their favourite walks in the UK with a view to
producing a 'Sudley Infants Good Walks Guide'.
Sudley Junior School will be promoting walking and park-away and
walk throughout the week with the help of local Community Support
Officers who will be launching a poster competition, the theme of
which is to outline the dangers of parking on the pavement around
school.
St Francis de Sales Infant and Junior schools will be encouraging
all their parents who have to drive to park away from the school at
a designated Park and Walk site to make Hale Road a better place for
pedestrians.
Lawrence Community Primary School will be encouraging everyone to
walk every day.
Hey Green Primary School are holding Walk to School Week in June,
pupils who walk to school will be allowed to wear their trainers all
week. They are also having a poster competition.
Smithdown Primary School will be asking children who come in cars to
make a special effort to walk to school and those that do will
receive a small reward. Each class is going for a walk on the local
area and will document their walks in walk to school week diaries.
St Teresa of Lisieux School are linking Walk to School Week with
their Art Week, pupils will be creating artwork relating to the
journey to school.
Rice Lane Infants and Nursery School are linking Walk to School Week
with all parts of the curriculum and a holding a special Children's
Voice session on the issue.
Walk to School week is funded by TravelWise, a campaign by
Merseytravel and the five Merseyside local authorities to help
people on Merseyside make smarter travel choices.
Everton STARS sign FOR Roy Castle Lung Cancer Foundation
EVERTON FC's David Moyes and Tim Cahill and David Moyes are the
latest 'signings' for Liverpool based charity, the Roy Castle
Lung Cancer Foundation. The pair will now act as official
patrons for The Foundation. Their first official duty was to open
the charity’s new shop in Liverpool’s Old Swan district.
The Foundation’s recruitment of Tim and David represents another
chapter in the continued development of the UK's only charity wholly
dedicated to defeating lung cancer – the biggest cancer killer in
the country.
David Moyes, Everton FC manager, said:- "As somebody involved
in professional sport I know that a smoke-free lifestyle can only be
beneficial. Not smoking is just one of the ways that people can help
prevent lung cancer in later life. I'm delighted to be supporting
the Roy Castle Foundation's efforts to raise awareness."
Mike Unger, Chief Executive of The Roy Castle Lung Cancer
Foundation, said:- “We're delighted to have the support of
David and Tim. They'll both play important roles for the charity."
The new Roy Castle Lung Cancer Foundation shop can be found at 625
Prescot Road, Liverpool, L13 5XA. |
