Taking out more credit, knowing you’ve little chance of repaying it could lead to a bankruptcy restrictions order.
The following debts will usually fall outside of bankruptcy
- Secured Debts
A secured creditor (e.g. mortgage company) will usually opt to rely on their security (the property or asset) rather than claim in bankruptcy. However they could claim for any ‘shortfall’ debt where the value of the asset is less than what they are owed.
- Benefit and Tax Credit over-payments by mean of fraud
Over payments of benefits and tax credits made before the date of bankruptcy will be included in the bankruptcy and cannot be recovered by other means except in the case of over-payment by means of fraud.
- Child Maintenance
Liabilities from an order made in a family or domestic court, such CSA claims for child support are outside of bankruptcy.
- Student Loans
Most educational loans would not be discharge in Bankruptcy.
- Court Fines
Court Fines imposed for an offence and liabilities from a confiscation order made under S.1 of the Drug Trafficking Act 1986 0r S.71 of the Criminal Justice Act 1988 are outside of bankruptcy.
- Personal Injury Claims
Debts from personal injury claims made against you are outside of bankruptcy.
Debts arising from an act of fraud will not be written off as part of a bankruptcy order.
- Debts in joint names
If you owe debts jointly with someone else, these will still be included in your bankruptcy. The creditor will chase the other party until the entire balance owed is repaid (or otherwise resolved).