Bankruptcy
What is Bankruptcy?
Bankruptcy is a method whereby a debtor legally declares that they cannot pay their creditors. In some cases, a creditor will instigate bankruptcy proceedings against an individual in an attempt to recover money owed; in many other cases an individual will declare bankruptcy him or herself when they can no longer meet financial commitments.
How does Bankruptcy work?
Whether the individual declares bankruptcy him or herself or bankruptcy proceedings are taken against them, bankruptcy is a legal process that in England and Wales involves the courts intervening between a debtor and his/her creditors.
The court will appoint a Trustee to handle the affairs of the individual declaring bankruptcy. The Trustee will assess the assets of the individual and will distribute them between the creditors.
Bankruptcy is a legal process and if proceedings are taken against you by a creditor, you cannot ignore them. Bankruptcy proceedings will continue whether you co-operate or not, so it is in your interests to seek professional advice.
How long will it take to pay off my bankruptcy debts?
You may have heard the terms “discharged” and “undischarged” with relation to bankruptcy. Following a change in the law in 2002, most bankruptcy proceedings now last for just one year. After a year of the bankruptcy individual will receive a discharge and the bankruptcy is cleared.
Can I pay off my debts quicker?
In certain circumstances, by declaring bankruptcy you can clear all your debts in just one week. You need to seek professional advice from a bankruptcy specialist company like Suitable Debt Solutions to determine whether this is possible or appropriate in your case.
What are the advantages of Bankruptcy?
Bankruptcy is usually viewed as a last resort and to be avoided if at all possible. It is true that bankruptcy has very far reaching implications and these must be taken into consideration if you are considering declaring bankrupty. However, for some people, particularly if they do not have assets, bankruptcy can be a very positive way of dealing with debt problems. •
What happens to my debts after Bankruptcy?
Bankruptcy is a “final solution” that will clear all debts in a way that is legally binding on the creditors • Creditors cannot contact you by letter or telephone or pursue you in any way for outstanding monies either during the period of bankruptcy or at any time in the future • All your affairs are dealt with by the court-appointed Trustee • Once you receive your bankruptcy discharge you are free to manage your own affairs again and make a fresh start.
Are there any disadvantages to Bankruptcy?
The implications of bankruptcy cover many aspects of life and can last beyond a discharge. For example: • You lose control of your assets since the Trustee will decide how the value of these should be divided between your creditors. • Your bankruptcy will be reported in the local newspaper and your affairs will be discussed publicly in open court. • You may find it difficult to get credit for some time after your bankruptcy discharge. • You cannot act as a company director or take any part in the formation of a limited company after bankruptcy• You are prevented from working in certain professions, for example you cannot practice as a Chartered Accountant or Lawyer after bankruptcy. • You may not hold certain types of public office after bankruptcy
Why should I ask Suitable Debt Solutions to handle my Bankruptcy?
If bankruptcy is the right debt solution for you, we will handle everything.
The paperwork associated with a bankruptcy is complicated and large in volume and the proceedings involve aspects of the law that many people are not familiar with. We will do all the paperwork for you, go with you to court to ensure that your interests are represented and that you fully understand the proceedings, and we will speak to the Judge on your behalf. We offer a bespoke service that will see you through every step of a bankruptcy.
Sometimes creditors move to take bankruptcy proceedings against an individual. If you are threatened with bankruptcy, you must take advice immediately. If it is not in your best interests to go through the bankruptcy process, we can usually stop the proceedings and help you find the most appropriate alternative solution to your debt problems.
It is even possible for us to stop bankruptcy proceedings once they have begun. We have such an excellent reputation with the courts for providing debt solutions that work for both the debtor and the creditor that judges will often act on our representations and recommendations and stop bankruptcy proceedings.
Speak to a Bankruptcy expert NOW
For many people, bankruptcy is an ideal way of dealing with debt problems and facing the future debt-free. However, it is not always the most appropriate debt solution and should therefore not be entered into lightly. It is imperative that each individual with a debt problem receives specialist advice to ensure that they are offered the best debt management solution, or combination of solutions, for their particular circumstances.
