Debt and Bankruptcy

A friend of mine is in serious debt and may have to go bankrupt.

She is a soldier in the TA.

A: How will this affect her TA career

B: How will; and can; the TA find out about the bankruptcy if it happens?

C: I believe that her pay and expenses can be easily diverted into her partners bank account via JPA before proceedings.

can anyone help?
Firstly it is highly likely that someone in the TA will see the bankruptcy notice in the local paper. It may affect her deployability but I'm not sure about that. If she fails to declare income or, worse, takes steps to keep the income secret from her administrator then she has broken the Law.
Tell 'her' to look into an IVA first - not so drastic as full blown bankruptcy.


Bankruptcy will get you in the papers, in debt cases sometimes it can be kept between you and a bona fide qualified debt counsellor. Don't touch a debt management company. The CAB has info on Bankruptcy at Bankruptcy

There is also "the Debt Relief Order (DRO): You must have debts of less than £15,000 and a low income."

CAB:> A debt relief order usually lasts for a year and during that time, none of the people you owe money to (your creditors) will be able to take action against you to get their money back. At the end of the year, you'll be free of all the debts listed in the order.

You can't apply for a debt relief order if you:

own things of value or have savings of over £300
own a vehicle worth more than £1,000.

^ See Debt relief orders

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