Why go Bankrupt?
Many people don’t understand bankruptcy and how complex and challenging 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 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 Essential to find a solicitor to make sure that the legal aspects of the case are dealt with fairly and that you have representation. This is not some kind of technicality: being declared bankrupt is an extremely serious issue.
A court will actually determine whether you are bankrupt. A petition is made to the court by yourself, or even by your creditors, asking that you are declared bankrupt. As creditors can file for your bankruptcy in effect, you can actually be declared bankrupt without your consent. This is a bit intimidating!
An Official Receiver will be appointed by the court once you are declared bankrupt. The Receiver will interview you and ascertain how much money you have, any assets that you have and anything that can be sold to bring in money. If you have assets then an Insolvency Practitioner, sometimes known as a Trustee will be appointed to sort out the selling of your assets.
The Receiver/Trustee now controls your finance and assets, not you.
The Trustee can apply to court if you seem to have additional surplus income, for an official Income Payments Order. That order remains in place for 3 years, but you can be legally and officially discharged from bankruptcy after only a year.
Always bear in mind that bankruptcy is a matter of public news. The bankruptcy details will be published in local papers and sometimes National newspapers. ‘Financial Associates’ such as gas, water suppliers etc will be told, and your ability to control your finances and get a mortgage will be impacted.
Finding a solicitor will mean that your voice is heard and that the process is fair to you. At this difficult and challenging time, it can help to feel a little control.