What is the best way to go Bankrupt
Many people don’t understand bankruptcy and how complex and challenging it can be. In layman’s terms, this article looks at the process, who is involved and the implications for the person declared bankrupt and how to find a good solicitors to guide you in the process.
Bankruptcy may be difficult and traumatic as well as a purely legal process for many people. So for those reasons it is Essential to find a solicitors to make sure that the legal parts of the case are dealt with fairly and that you have representation. This isn’t just a matter of fact – bankruptcy is a very serious matter.
A court will actually determine whether you are bankrupt. Either you or your creditors can petition the court to declare you bankrupt. As creditors can file for your bankruptcy in effect, you can actually be declared bankrupt without your consent. This is a bit intimidating!
After you have been declared bankrupt, the court will appoint an Official Receiver. After interviewing you, the Receiver will decide whether anything can be sold, based on what money and assets you have. If you possess assets, you’ll find a Trustee is appointed (an Insolvency Practitioner) to sell these.
The Receiver/Trustee now controls your finance and assets, not you.
The Trustee can apply to court if you seem to have additional surplus income, for an official Income Payments Order. The bankruptcy order is in place for 3 years but after just one you could be legally and officially discharged.
Remember that a bankruptcy is public news. The bankruptcy details will be published in local papers and sometimes National newspapers. Any ‘Financial Associates’ like utilities suppliers etc will be informed, and your bankruptcy will affect mortgage applications and other finance in future.
finding a great solicitor will mean that your voice is heard and that the process is fair to you. It also helps you to at least feel you have a little control over what can be a very difficult and challenging experience.
Filed under: Financial Advice