Bankruptcy is a way of legally declaring your inability to pay your creditors. In Bankruptcy you usually stop paying your creditors. Your creditors cannot chase you for the outstanding debt.
If you feel your debts are completely unmanageable Bankruptcy could be your best option. Before going bankrupt it is important that you understand all the options available to you. Bankruptcy can have a serious impact on your future and even your job so it is important to get the right advice and information.
There are two ways to go Bankrupt in the UK.
1. You can petition for your own bankruptcy which is known as a 'debtors petition'.
2. A creditor who you owe more than £5,000 to, can petition for your bankruptcy. This is known as a 'creditors petition'.
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due.
When your debts seem totally out of control, so much so that you will never pay them off, bankruptcy can take away all the stress of making debt payments.
Although bankruptcy has a perceived stigma and is publicly advertised, it should always be considered when dealing with insolvency matters.
It can provide a real fresh start for debts that will never be repaid.
Fill in the form if you would like to find out more about a Bankruptcy and if it might be a suitable option for dealing with your debts.
Below are some of the most frequent Bankruptcy questions and answers that we are regularly asked. If you have any other Bankruptcy related questions, get in touch and we will be happy to answer them for you.
The best way to see if you qualify for Bankruptcy, or any of our other solutions, is to speak to one of our friendly financial experts. We strive to help you no matter what your situation.
To find out more contact us now or fill out the form above.
If your debts are serious enough that you are considering the prospect of going bankrupt, you need to be aware that there are charges for declaring yourself bankrupt. These being a £150 court fee and a £450 to help meet the costs of the Official Receiver. This could mean total costs of £600 which you are legally bound to meet yourself.
If you are on means-tested benefits, then you will be exempt only from the court costs of £150. This is another reason why it's so important that you get debt help and consider all other possible debt solutions such as an IVA (Individual Voluntary Arrangement) first.
Note: These fees are correct at time of publishing.
An individual can be made bankrupt either in one of three way:
A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor's claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order is made is both difficult and expensive.
With Bankruptcy comes some serious implications. Some of these are detailed below.
People think Bankruptcy is the only choice when it comes to dealing with their debts, but there are many other solutions in todays current market.
Bankruptcy has changed a lot over the years. Currently, the time for being discharged from your Bankruptcy is after a maximum period of 12 months. After this time, you will no longer be bankrupt. The length of time of a Bankruptcy can be altered in some circumstances.
When you have finished your Bankruptcy, it is important to remember that the effects of Bankruptcy extend far further than just one year. i.e. your credit rating will be affected for many years.
People may find out. Bankruptcy Orders are advertised in the London Gazette and also in your local newspaper. Your details will be placed on a Bankruptcy Register which is maintained by the Department of Trade & Industry and The Insolvency Service. The Register is a public document and can be viewed by the public on the internet.
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