For those declaring themselves bankrupt it’s painful and there can be short term and long term consequences, yet bankruptcy is a last resort option for individuals who are not capable of paying their debts.
Bankruptcy allows you to make a fresh start and write-off all the debt you own.
First, let us discuss how you can apply for Bankruptcy.
The process of declaring yourself bankrupt is easy; you just need to fill an application form disclosing all the details about your debts, income and outgoings including any other additional information that you may need to disclose.
After submission of your application it will be assessed by an official adjudicator who works in the insolvency office, they will analyze all the details submitted and if all the requirements are met you will be declared bankrupt.
The assessment process will not take more than 28 days.
You would need to pay a £680 fee before you submit the Bankruptcy application form, although if you don’t have the fee, the amount can be paid in installments.
Talk to the national debt help expert debt advisors to find a solution for you.
- Bankruptcy will stay on your credit records for minimum six years and maximum 15 years if you are subject to a BRO (bankruptcy restrictions order).
- You cannot spend any money without the permission of the Official Receiver or Trustee.
- You can keep clothing, bedding, basic household items, tools or equipment’s required for your work, including your vehicle, if you own expensive furniture, you would be asked to replace them with cheaper once and any amount generated will be used to settle down creditor’s payment.
- After being declared bankrupt you will have a limited amount that will help you in meeting your basic living needs and the rest of the money will be distributed to your creditors. If you have any additional assets or savings that Official Receiver or Trustee don’t know about, please inform them about the source, so that it can be distributed amongst your creditors.
- If you own a home and it’s been sold to pay off your creditors, you will get a grace period of 12 months for making an alternative arrangement. You can also ask a friend or relative to purchase a part of your property at market value.
Bankruptcy is an option available to settle down your debts, but there are also other options available that can be discussed with an expert debt advisor.
Contact National debt Help for a debt consultation and to find out what are other options are available to you.