If you’re facing overwhelming debt, one potential path toward resolution is bankruptcy. Bankruptcy can be a viable option when you’re unable to repay your debts. It’s important to understand how bankruptcy works, both before considering it as a solution and throughout it’s term. Here’s an overview:
You can apply for bankruptcy yourself, or a creditor you owe money to can petition for your bankruptcy, even if you oppose it. To be eligible for creditor-initiated bankruptcy, you must owe at least £5,000.
Our friendly team will guide you through the bankruptcy process and help you understand how it will impact your financial situation.
Just to let you know…
We’re here to offer free and confidential advice regarding all the debt solutions at your disposal. We understand that your financial situation is unique, which is why we aim to create a solution tailored to your specific needs.
Firstly, you’ll need to provide details about your assets, debts, and income and expenditure so we can understand your financial position.
If you qualify, a fee of £680 is necessary for your application to be processed. This fee can be paid in instalments to facilitate the process.
An adjudicator will review your bankruptcy application and, if deemed appropriate, issue the bankruptcy order. You will receive a copy of this order shortly after. Additionally, you may undergo an interview with the Official Receiver (“The OR”) to discuss your financial situation.
Typically, bankruptcy discharge occurs within one year. The Official Receiver will assess whether you have any assets within the bankruptcy estate, such as a property, that can be liquidated to repay your creditors. If you possess a monthly disposable income, after accounting for essential living costs for yourself and your family, you may be subject to Income Payments Agreement/Order, lasting for three years.
Depending on the circumstances, an external Trustee, who is an Insolvency Practitioner, may be appointed.
We understand that each person’s financial situation is unique, and the outcomes of debt solutions can vary based on individual circumstances. However, here’s an illustrative example of how a debt solution could potentially transform the life of someone burdened by £32,000 in unsecured debts.