Bankruptcy

It is important to understand that bankruptcy is a most extreme method of dealing with debts you cannot pay.   This is because there are so many negative consequences that come with declaring yourself bankrupt, or allowing somebody else to make you bankrupt which can in many cases be avoided. Before you contemplate bankruptcy please take a few moments to read this page and to take in the possible consequences.

It has been published recently that Britain’s DEBT is increasing by £1 million every 4 minutes and that there is a significant increase in the demand for bankruptcy advice. Far too many clients who contact Credit Repair UK are unaware of the many other options are available to them to avoid Bankruptcy.

Call  0845 6432954  now! or complete the 
get help now form.

If you're in debt now and struggling to manage your finances, then unless you get help and information about the possibilities you have available to you, it is almost certain that a year on from now you will be further in debt! (Without help or guidance it's almost impossible to ever solve your debt.)
This is where Credit Repair UK and their team of strategic partners can assist you in making the correct decisions to manage your debts.
Credit Repair UK has one aim - to give you access to the most effective strategies in consolidating your debts. Credit Repair UK's team of strategic partners is available both online and off to ensure you get the correct advice

What is bankruptcy
Bankruptcy is a legal status that usually lasts for a year and can be a way of clearing debts you can't pay. When you're bankrupt, your non-essential assets (property and possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are 'discharged' (cancelled).

How do you become bankrupt

A court can declare you bankrupt by issuing a 'bankruptcy order' after it's been presented with a 'bankruptcy petition' by one or more of your creditor. It is little known that you can be sued for bankruptcy for as little as £750.

Once bankruptcy proceedings have started, you must co-operate fully even if it's a creditor's petition and you dispute their claim. If possible you should try to reach a settlement before the petition's due to be heard - doing it later can be difficult and expensive.

Alternatives to bankruptcy

Where is a bankruptcy order made?

Bankruptcy petitions are usually presented in the High Court in London or at a county court near where you live or trade (although not all deal with bankruptcy petitions).

Who deals with your bankruptcy?

Official Receiver

An Official Receiver is appointed to protect your assets. They act as trustee of your bankruptcy affairs if you have no assets.

Insolvency practitioner

If you do have assets, an Insolvency Practitioner will be appointed to act as trustee and sell your assets to pay your creditors. If Bankruptcy does become the correct solution for you then Credit Repair UK will ensure you get the very best insolvency practitioners working for you. Once a bankruptcy order has been made against you, your creditors can no longer pursue you for payment. Payment becomes the responsibility of the trustee.

Call  0845 6432954  now! or complete the
  get help now form.

How bankruptcy affects you

Assets

Once you're bankrupt, the Official Receiver, or appointed trustee, can sell your assets to pay your creditors. However, certain goods aren't treated as assets for this purpose, for example:

• equipment you need for your work (e.g., tools or vehicles) 
• household items needed by you and your family (e.g., clothing, bedding and furniture) 

Earnings

The Official Receiver can look at your income (taking into account expenses such as your mortgage, rent and household bills) and decide if payments should be made to your creditors.

You may be asked to sign an 'income payments agreement' to pay fixed monthly installments from your income for three years.

If you don't pay (or if you don't sign the agreement voluntarily), the Official Receiver can apply for an income payments order from the court to order you to pay - running for at least three years from the date of the order.

If your circumstances change, you'll need to tell the Official Receiver, so they can review these arrangements.

Call  0845 6432954  now! or complete the
get help now form.

Ongoing commitments

You'll still have to meet ongoing commitments such as rent or debts incurred after you become bankrupt.

Your obligations when you're bankrupt

• Give the Official Receiver details of your finances, assets and creditors. 
• Look after your assets and hand them over to the Official Receiver with the relevant paperwork, such as bank statements and insurance policies. 
• Tell your trustee (either the Official Receiver or insolvency practitioner) about any new assets or income during your bankruptcy. 
• Stop using credit cards and bank or building society accounts. 
• Not obtain credit over £500 without telling the creditor that you're bankrupt. 
• Not make payments direct to your creditors (there are exceptions to this, such as mortgage arrears and outstanding child support payments) 

You may also have to go to court and explain why you're in debt.

How long does bankruptcy last?

Bankruptcy normally lasts for one year. After this time, you'll be 'discharged' from your bankruptcy regardless of how much you still owe.
Your discharge could happen earlier if you co-operate fully with the Official Receiver. However, in a small number of cases and if you've behaved irresponsibly (beg, not cooperating), bankruptcy can last for much more than one year.

Where to get help and advice

Call  0845 6432954  now! or complete the
get help now form.

If you're thinking about declaring yourself bankrupt or you're being threatened with bankruptcy, it's important to seek independent advice.

Complete our  apply online  form and we will get one of our professional advisors to contact you at a time most suitable to you. As you can see from the government provided material above, bankruptcy is not an easy solution especially if you have assets so contact Credit Repair Uk now and we can explore the alternatives together.