Bankruptcy
Bankruptcy Solicitors
With the current state of the economy, an increase in job losses and credit being harder to come by, it’s not surprising that more and more people are looking at bankruptcy to solve their debt problems.
If your debt problems have become so overwhelming that you are considering bankruptcy, then please click Wigster’s “Get me a Quote” button below to help you choose an expert Bankruptcy Lawyer. Compare their services and their prices. Your chosen solicitor will be able to give you both legal and practical advice on your options. If bankruptcy is the only way forward, they will then be able to guide you, step by step, through the whole process of insolvency and bankruptcy.
Bankruptcy is one way of dealing with debts you can’t pay. Your assets can be used to pay your creditors (people you owe money to). You are subject to certain restrictions and discharged (freed) from your debts after a period of time. It is a major undertaking which can impact your life in many ways so you are advised to seek specialist legal help at the outset.
Anyone can apply to the court to make them bankrupt, including individuals, sole traders and members of a partnership. Only the court can make you bankrupt, and not all courts deal with bankruptcy cases. You can make yourself bankrupt by petitioning (applying to) the court. Your creditors can usually petition the court if you owe them at least £750. You are bankrupt when the court issues a bankruptcy order against you.
You have to hand over any assets of value and the financial interest in your home to a person appointed to manage your bankruptcy called a ‘trustee’.
Your trustee will be either an Official Receiver (an officer of the bankruptcy court) or an insolvency practitioner (an authorised debt specialist). It takes time to appoint a trustee, so the Official Receiver manages your bankruptcy at first. They’ll collect information on your finances and protect your assets for your creditors.
If you have significant assets, it is likely the Official Receiver will ask your creditors to appoint an insolvency practitioner as trustee. If you don’t have significant assets the Official Receiver will act as trustee.
Your creditors are told about your bankruptcy and have to make formal claims to your trustee for the money they are owed. You are not allowed to make payments directly to them and they mustn’t ask you for payment.
Your trustee will manage the payments to your creditors through the sale or disposal of your assets. In some cases, your spare income can be used to help pay your debts.
When you are made bankrupt, you have to attend an interview and provide details about your debts, assets and financial situation. This will help the Official Receiver protect your assets for the benefit of your creditors and decide if a trustee is needed to manage your bankruptcy.
Bankruptcy usually lasts 12 months and after this time you are discharged (freed) from your bankruptcy debts. It can be earlier if the Official Receiver completes their work on your bankruptcy and your creditors don’t object.
Your discharge can be delayed if you break the bankruptcy restrictions or don’t co-operate with the Official Receiver.
Find a Bankruptcy Solicitor locally or nationally from a range of fixed legal cost options and select a quality Solicitor to save you money – wigster.com “Compare Solicitors, Compare Prices”
