Bankruptcy is a challenging experience for anyone, often shrouded in mystery, with people being unaware of the process and the complex route to bankruptcy. 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 aid you in the process.

The process of being declared bankrupt is both a legal process and for most people who are declared bankrupt, a very difficult process, even a little traumatic at times. 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. You can make a petition to the court to be declared bankrupt or your creditords can also do this. You can even be declared bankrupt without your consent as your creditors can file for your bankruptcy in effect. It’s a scary thought!

An Official Receiver will be appointed by the court once you are declared bankrupt. Based on an interview, your money and assets will be determined by the Receiver, who will decide whether anything can be sold. An Insolvency Practitioner or Trustee will be appointed to sell your assets, if you haveany.

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 will be published in the newspapers - certainly local ones and also sometimes national ones. 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 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.

 

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