Many people turned to bankruptcy for various reasons, for instance to stop a foreclosure on a property, a repossession of a car, and more. Irrespective of financial crises you have been suffering from, bankruptcy can provide a fresh start and allow you to re-build your credit and get back on a healthy financial traction. Although it may seem like an easy process on the periphery, but complications may arise at any point of time, hence its better to seek bankruptcy advice in UK before you file the one in front of the court.
Fundamentals of bankruptcy
Bankruptcy refers only to insolvency of individuals and partnerships and not the company as a whole. An individual in order to seeking bankruptcy will require court order for the same and this can be done by filing a bankruptcy petition in front of the court. There can be two ways of petition either by the individuals on their own or by the creditor or by creditors against an individual debtor.
However, after being declared bankrupt individual is subjected to certain restrictions, for instance:
- Bankrupt individual cant raise credit without disclosing his bankruptcy status
- Obligated to inform his trustee and to cooperate in the management of his affairs by them
The court in totality has complete powers to compel a bankrupt to do so.
Declaration of Bankruptcy: Aftermath
After the court has issued bankruptcy order:
- Youll receive a copy of the order
- Your assets can be utilized to pay your debts
- You are obliged to follow certain rules called bankruptcy restrictions
- Your details will be published on a bankruptcy register called individual insolvency register
After a period of 12 months a bankrupt is usually discharged from bankruptcy restrictions and debts, however the property ceased during the time of bankruptcy can still be used to pay off debts.
How a bankruptcy broker can assist you with bankruptcy?
A right bankruptcy broker will offer you free bankruptcy advice in UK. There are many other ways a bankruptcy broker can help you with. Firstly, he will advise you on how to get relief from bankruptcy. Secondly, broker will help match you with a debt plan provider who is ready to help you regardless of your situation. Thirdly, the company has the competence to help you guide with sound bankruptcy petition. However, choose your broker wisely.