Bankruptcy - The Last Resort
In a society wherein debt seems to keep the business afloat, it is no longer alarming that cases of bankruptcy have reached a high number. Over 300 people a day go insolvent. There are now more and more business owners who use Bankruptcy as the last resort to eliminate the repercussions which come from Bad Credit Loans and mountains of debt. Sometimes it is the only option to get out of debt and start anew. In addition, these bankrupt cases have been more common to students who have huge debts.
Is Bankruptcy a viable debt help option?
Declaring Bankruptcy can come in three forms depending on who initiated the filing:
- Voluntary – you file a petition in court by yourself.
- Involuntary – your creditors will initiate the proceedings.
- IVA Supervisor - with whom you have assigned to do the job for you.
Filing of Petition
A petition will be filed to court that you are struggling to get out of debt and cannot make your repayments. A court fee plus deposit is needed for the filing of the petition. Statement of affairs must also be sent to court together with the petition. This is a detailed list of all your assets, employment records, credit card and bank information, and also your household expenditure. Everything will be forwarded to the district judge who’ll set the hearing date. If it was initiated by your credit grantors, the debt should not be lower than £750. In any case that you don’t acknowledge, the proceedings will continue. A reliable debt advisor would advise that you give your cooperation on all proceedings.
How to Handle Bankruptcy
If the judge decides to grant Bankruptcy Petition, the Official Receiver is responsible to act as the trustee for your properties. An accountant or solicitor can also act to be the trustee; he will distribute your assets and process payments to all your credit grantors.
Restrictions with a Filed Bankruptcy
- The Official Receiver will be provided all necessary financial information in twenty-one days. This includes the increase of assets or income within the bankruptcy term.
- You cannot seek debt help loans exceeding to £250 without disclosing your financial status.
- You cannot build society accounts or use bank accounts anymore.
- You can no longer enter into a business venture even if you use another name aside from the name that is under bankruptcy; the name should be disclosed.
The period of Bankruptcy
The bankruptcy period may last from one to six years.
You will get out of debt and be free of financial strains. After the Bankruptcy had been discharged, all of your debts will be wiped out and cleared from your credit record.
There can be a great loss of all your valuable assets, which includes your home, car, or your company.
Bankruptcy is a debt help option that many people turn to as a last resort when all other means have been evaluated and tried out. Give the UK Debt Advisor a call if you feel you will have to apply for Bankruptcy as there may be other option open to you..