What Is the Bankruptcy Process
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 solicitor to aid you in the process.
There is not just the legal process of bankruptcy to consider but alo the difficult and traumatic aspects. So for those reasons it is Essential to find a solicitor to make sure that the legal parts 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. Either you or your creditors can petition the court to declare you bankrupt. You can even be declared bankrupt without your consent as your creditors can file for your bankruptcy in effect. Quite an unpleasant thought!
After you have been declared bankrupt, the court will appoint an Official Receiver. The Receiver will judge (after an interview) how much money you have an whether you might sell any assets or raise more money. Your assets will be sold by a Trustee or Insolvency Practitioner who will be appointed.
You have to remember that you don’t control your assets or finances any more - the Receiver/Trustee does this.
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.
It’s true that bankruptcy is public news. Details of the bankruptcy will be published in the local newspaper and sometimes even the nationals. ‘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 great 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.
