Debt Advice are on hand to make sure you get the best advice before deciding to start the bankruptcy process. For more helpful information please call us free on 0808 131 9110.
You need to make sure that you have fully researched any alternatives before you decide on declaring yourself bankrupt. Our page on IVAs is useful, as this process was introduced by the government as a less severe alternative to bankruptcy.
The Court will decide whether or not you are to be made bankrupt after a petition has been presented by either you or your creditors. A Bankruptcy Order can be made even if you do not consent to the proceedings.
Your Official Receiver (a civil servant and an Officer of the Department of Trade and Industry) will require full details of your financial circumstances as well as a face to face interview.
A creditors meeting will then be called and any assets, such as your home, will can be sold to repay your creditors.
The Official Receiver can apply to Court for an Income Payments Order, if it appears that you have available surplus income. This will be in force for three years even though you may be legally discharged from your bankruptcy after one!
Remember that bankruptcy is a legal issue and consequently there are serious implications which are unavoidable, please contact us for more information and assistance, 0808 131 9110.
In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted. Always take expert advice from an Insolvency Practitioner.