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 solicitors to aid you in the process.
Bankruptcy may be difficult and traumatic as well as a purely legal process for many people. So for those reasons it is Essential to find the best solicitor to make sure that the legal aspects of the case are dealt with fairly and that you have representation. This isn’t just a matter of fact – bankruptcy is a very serious matter.
Whether you are bankrupt is determined by a court. A petition is made to the court by yourself, or even by your creditors, asking that you are declared bankrupt. Creditors can file for your bankruptcy so you can actually go bankrupt without your consent. It’s a scary thought!
An Official Receiver will be appointed by the court once you are declared bankrupt. The Receiver will judge (after an interview) how much money you have an whether you might sell any assets or raise more money. If you have any assets, an Insolvency Practitioner or Trustee will be appointed to sell them.
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 the court for an official Income Payments Order, if you seem to have surplus income. You can be legally and officially discharged from bankruptcy after one year, although the order remains in place for 3 years.
Remember that a bankruptcy is public news. Details of the bankruptcy will be publishes in papers – local newspapers and sometimes Nationals. ‘Financial Associates’ such as your utility (gas, electricity, water) suppliers will also be told of your bankruptcy and it has significant implications for your future in terms of what control you can have over finances, ability to get a mortgage etc.
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.