When you file bankruptcy, all accounts listed in your bankruptcy will be updated to show “account included in bankruptcy.” Once the bankruptcy is discharged, the account will be updated to show “discharged in bankruptcy.” With a Chapter 7 bankruptcy, all debts are forgiven and there is no repayment plan.

Will Chapter 7 take my tax refund?

A tax refund is an asset in both Chapter 7 and Chapter 13 bankruptcy. It doesn’t matter whether you’ve already received the return or expect to receive it later in the year. As with all assets, when you file for bankruptcy, you can keep your return if you can protect it with a bankruptcy exemption.

How does bankruptcy affect my partner’s bank account?

The OR only wants money belonging to the bankruptee. If your partner is using your bank account, this will only impact you if the money belongs to the bankruptee. For example, if the bankruptee has been using your account for their wages then this money is available to bankruptcy.

How does bankruptcy affect my partner’s council tax?

For example, if you have arrears on your council tax, then the council will make your partner fully responsible for all the arrears (even if these were included in your bankruptcy). The council will no longer be able to chase the bankruptee for money. The bankrupt has no further liability for the council tax debt.

What do you do with the money you get from bankruptcy?

If you have assets, money from the sale of these will be used to pay the costs of the bankruptcy process before creditors are paid. If your case is administered by the official receiver the following fees will all be deducted from the money realised:

Can a debt be passed to another person in bankruptcy?

In a bankruptcy debts cannot be passed to someone else, if any of the debts were in joint names, or had a guarantor, then the other person would be pursued for their liability for the debt. There are circumstances, where your partner will be liable for your debt.