How to go Bankrupt
Posted on | June 29, 2009 |
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Bankruptcy is a mysterious process, and many people don’t understand it and how complicated 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 UK solicitor 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 important to find the best solicitor to make sure that the legal aspects of the case are dealt with fairly and that you have representation. This is more than a mere technicality - declaring bankruptcy is very serious.
A court decides whether or not you are bankrupt. Either you or your creditors can petition the court to declare you bankrupt. You can even be declared bankrupt without your consent as your creditors can file for your bankruptcy in effect. Quite a scary prospect!
Once you’re declared bankrupt, an Official Receiver is appointed by the court. Based on an interview, your money and assets will be determined by the Receiver, who will decide whether anything can be sold. If you possess assets, you’ll find a Trustee is appointed (an Insolvency Practitioner) to sell these.
Going forward, the Receiver/Trustee will control all your finances and assets, not you.
An official Income Payments Order can be applied for by the Trustee if you seem to have surplus income. The order is in place for a period of 3 years, but you could be discharged from bankruptcy after just one.
Bankruptcy is public news. Details of the bankruptcy will be publishes in papers - local newspapers and sometimes Nationals. Any ‘Financial Associates’ you have (eg utilities etc) will be told of the bankruptcy, and this will impact future financial decisions you can make, eg mortgages etc.
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.
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