How to go Bankrupt

Bankruptcy is a mysterious process, and many people don’t understand it and how complicated 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 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 important to find the best solicitor to make sure that the legal aspects of the case are dealt with fairly and that you have representation. Being declared bankrupt is serious, and not just a technicality.

Whether you are bankrupt is determined by a court. Either you or your creditors can petition the court to declare you bankrupt. As creditors can file for your bankruptcy in effect, you can actually be declared bankrupt without your consent. It’s a scary thought!

After you have been declared bankrupt, the court will apoint an Official Receiver. 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 any assets, an Insolvency Practitioner or Trustee will be appointed to sell them.

The Receiver/Trustee now controls your finanaces and assets, not you.

The Trustee can apply to court if you seem to have additional srplus income, for an official Income Payments Order. This order will remain in place for a 3 year period, although you might be discharged legally after one year.

Remember that a bankruptcy is public news. bankruptcy details are published in both local newspapers and sometimes national ones too. ‘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. It can help to feel as if you are in control of this difficult time.