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How To Declare Bankruptcy

It’s critical to consider your options thoroughly before declaring bankruptcy. Learn more about it, then speak with a free debt expert to see if bankruptcy is the best method to pay off or eliminate your obligations. This information is only for residents of England and Wales. We took a look at how to declare bankruptcy, should it be the best option for you.

Bankruptcy Defined

Bankruptcy is a legal process that wipes out any debts that a bankruptcy order mentions. The order cannot include some debts, such as social security loans, school loans, child support arrears, and fraudulent debts.
Any assets you have are important. Those overseeing the process  will evaluate them to see if they can utilise them. This is in case they can help pay off your debts. Some assets, such as tools or equipment that you need to continue working, the system allows you to keep. A debt counsellor can help you understand how this will effect you.

How To Declare Bankruptcy – The Process

If you’re filing for bankruptcy, you’ll need to fill out an online application and create an account. You’ll need to supply details about your debts, income, pension, bank accounts, assets, and outgoings. You should include any letters bailiffs or enforcement agencies have sent you. An official adjudicator from the Insolvency Service will look over your application. They’ll decide whether or not you’ll be declared bankrupt.

Within 28 days of submitting your application, you should receive a response.

Just keep in mind that there are a variety of options for dealing with debt, and bankruptcy may not be the best option for you. It is critical that you consider your options and the path ahead.

How To Declare Bankruptcy – It Is Not Free

The fee of filing for bankruptcy is £680, which you must pay before submitting your application. If you are unable to pay the charge in full, you may be able to pay in instalments. Contact the insolvency information line for further information.

How To Declare Bankruptcy – After You Declare Bankruptcy

Within two weeks of getting your bankruptcy order, courts will appoint an Official Receiver on your behalf.

They’ll look at your income, assets, and expenses. To determine how they can be used to pay off your debts. They may ask you to meet with the official receiver for an interview. Your creditors must submit a written claim for the money they are owed to the trustee.
You cannot make direct payments to them, and they cannot demand payments from you.

The receiver may write off most of your outstanding obligations after a period of time (typically one year) and you can start over. Limitations continue to be imposed on you until you are free from bankruptcy. Any credit you do obtain will almost certainly be costly both now and in the future. Bankruptcy has an impact on your credit score, and credit reporting agencies will keep your information on file for at least six years.

Who Can Declare Bankruptcy?

If you have no way of paying off your obligations and limited assets, bankruptcy may be the best option for you.

Should you possess a home, you should consider other choices because bankruptcy may force you to sell your home if you have enough equity. If you rent a property who has gone behind on your rent, your landlord can legally remove you. Keep this in mind before you commit to the process of bankruptcy. Read up on all debt management and decide which course best fits your personal and unique circumstances

It’s critical that you don’t become bankrupt on your own. First, speak with a free debt counsellor.

Can I Be Forced Into Bankruptcy?

Someone who owes you money can put you into bankruptcy if you have a debt of £5,000 or more. The procedure of someone else declaring you bankrupt is unique. High street lenders, on the other hand, rarely use this option, preferring to work with you to find a different approach to pay off your obligations. If unsure, get financial advice, always.

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