Bankruptcy
What is Bankruptcy?
- Bankruptcy is a means of clearing all debt and is often the course of action when an individual is incapable of paying their creditors.
- If filing for bankruptcy for the first time, the bankrupt individual will usually receive their discharge a year after the bankruptcy order is issued.
- Despite the bad stigma associated with bankruptcy, plus the publicity surrounding a bankruptcy order, it is sometimes the best way of clearing debts.
- An Individual Voluntary Agreement is generally a preferred course of action and should always be considered prior to filing for bankruptcy.
- You should ensure that you fully cooperate if bankruptcy is brought against you, as a bankruptcy order can still proceed, even if you refuse to accept or acknowledge it.
What will happen if I file for Bankruptcy?
- Your assets will be shared amongst your creditors.
- You will become free of all debts and able make a new start.
How are people made Bankrupt?
There are three main ways that people are made bankrupt:
- Voluntarily – If a debtor makes the decision to file for bankruptcy.
- Involuntarily – If the creditor is owed over £750.
- IVA – If you fail to meet IVA agreements.
What are the ramifications of Declaring Bankruptcy?
- Your assets are seized.
- You will be denied credit over £250 without special permission from the creditor.
- You are unable to become a company director.
- You cannot engage in the formation, promotion or management of a limited company without the court’s permission.
- You cannot trade in business by any alternative name without informing all those involved in the bankruptcy.
- You cannot act as a Charted Accountant, Lawyer, Justice of the peace, member of parliament or member of the local authority.
- Your credit rating will be damaged for years after.
How could Bankruptcy help me?
- Filing for bankruptcy usually occurs following many years of financial difficulty, uncertainty and stress, and hence, it can provide a great relief from the burden of debt.
- In many cases, an automatic discharge is provided after one year, or even less in some cases.
When can I call?
- You can call the bankruptcy helpline any time; 24 hours a day, 7 days a week, 365 days a year.
How can I get help with Bankruptcy?
- Freephone: 0800 074 6918
- Email: info@e-insolvency.co.uk
