I'm considering going bankrupt as I can't meet up with my payments anymore....totalling £50k. However, I still need some clarification on a couple of issues:
1) I'm a final year, full-time student who works full-time hours. I know my student loans won't be written off by bankrupcy but what would my financial stance be during the one year, that I'm bankrupt and after the discharge?
2) What happens to my income during the 1 year of bankrupcy? Is it assessed every month?
3) What happens to my income AFTER the 1 year of bankrupcy discharge? Will my income still be assessed after the discharge after 1year (as the bankrupcy is still going to be on my credit file for another 5 years)....or will I be home free ?
4) Assuming I go bankrupt now and currently earning £1000, then get a graduate job in July earning £1500 a month, will the extra £500 be 'taken off' me as contribution to my creditors?
5) In 4) above, if it will be used towards my debts, will this cease after the discharge @ the end of year 1?
6) If, for example, from the scenario above I get a raise or promotion to £2500 two months AFTER my discharge what happens to the extra cash I'm earning?
Thanx for your feedback in advance!