The last resort.

Bankruptcy should be looked at as a last resort to debt problems as there may be other debt solutions available that do not have as severe consequences. However bankruptcy may still be the best solution for some people.

A bankruptcy order may be obtained by any creditor owed more than £750, or you yourself may ask the court to make an order (fees payable). An Official Receiver (Government official) will contact you to discuss your financial situation. They will need information on all your creditors, these are the people to whom you owe money, including any disputed creditors.

The Official Receiver will deal with your creditors. A report with a summary of your financial situation will be sent to all creditors you owe money to. Your assets will be sold to pay off some or all of your debts; this could include your home, car and luxury items.

You will be told by the Official Receiver when your bankruptcy is over, normally after one year, possible less if he decides to close his file early. Even if some of your assets remain unsold after the end of your bankruptcy, they will still remain available to your creditors and your trustee can still sell them.

Bankruptcy has different consequences for different people. A professionally qualified person such as a solicitor or accountant may have their practising certificate suspended because of their bankruptcy and also a bankrupt cannot act as a company director. People in these positions may be more suited to another debt solution with less serious consequences like an IVA or Debt Management Plan.

For more information and advice, contact us online or call us now on 0800 473 0636