What is Bankruptcy?

Bankruptcy is the administration of the affairs of the debtor by a trustee, for the interest of the creditors. When a person becomes bankrupt the control of all the debtor's assets, with certain exceptions, pass to a trustee whose job it is then to sell and distribute all assets to the creditors.

Any application for a bankruptcy order may be made by any of your creditors who are owed more than £750 or by the debtor themselves. Once the order has been made the debtor loses any right to his property apart from any equipment that may be needed for business use and basic domestic equipment, such as clothes, bedding and furniture and maybe certain pension rights.

There are, however, special rules regarding the bankrupt's home. Generally speaking if the bankrupt has equity in a house it may have to be sold. However, the law discourages the trustee from taking steps to force a sale through the courts during the first twelve months of bankruptcy, where the debtor is married or has young children.

The trustee has three years from the date of the bankruptcy order to sell the house or otherwise deal with the bankrupt's interest in it. If they do not deal with it within this time the property will revert to the bankrupt and, if the value of the equity is less than £1,000 the trustee will not be able to sell it at all.

If the bankrupt has surplus income above his/her needs, he/she may be required to make contributions for up to three years. The trustee may also claim, for as long as the bankrupt remains undischarged from his/her bankruptcy, any property acquired by the bankrupt, such as assets left to him/her in a will. Such acquisitions will be released for the creditors' benefit.

During the bankruptcy the bankrupt must not obtain credit of more than £500 from anyone, without telling that person that he/she is an undischarged bankrupt. He/she must not carry on business under a different name from the one under which he/she was declared bankrupt, without disclosing the fact that he/she is an undischarged bankrupt. He/she may not act as a company director without the Court's consent. His/her credit rating will be affected and some employers will not employ a bankrupt.

The bankrupt will usually be discharged from bankruptcy automatically after one year, or maybe sooner if the official receiver decides to close the file early. Once discharged, the bankrupt is released from his bankruptcy debts with some exceptions such as Court fines, and matrimonial debts. After he/she has been discharged, the bankrupt does not have any right to take back any property that was part of his estate in the bankruptcy and the trustee will remain in the office for as long as it takes to sell the property and distribute to the creditors.

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Declare bankruptcy and wind up your financial activities to "start again".

If you're sinking in deep debts, then, declaring bankruptcy is a last resort to bank on. Usually bankruptcy petitions are presented by a creditor who is individually or jointly owed £750 or more. What drives you to filing bankruptcy is ballooning credit card bills, sudden medical emergencies, business losses or any other personal emergency and heavy borrowings.

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Stop! Are you considering, declaring bankruptcy to combat your heavy borrowings and financially stretched life. Why don't you look at the various options to combat debt with Free Personal Bankruptcy advice. Find out if bankruptcy is the right option for you or not?

Our free and sound bankruptcy advice helps you with simple and hassle free advice to shed your bankruptcy blues! With us, you open up a new world of options to combat your debts, such as a debt consolidation loan, debt management and IVA. We understand that you might have to resort to bankruptcy for a number of reasons but the good news is that we have all the information and advice you need.

Choose your options carefully and we help you choose the one which suits your circumstances. Filing bankruptcy can only be a last resort, we let you know if your kind of situation really needs filing bankruptcy.

Resolve your financial problems after considering all your options with free bankruptcy advice. Go ahead with bankruptcy filing if you feel there's no way out to your debts. If not, consider bankruptcy alternatives. For more on bankruptcy alternatives skim through our inner pages. Reach us now, before filing personal bankruptcy !

When you file bankruptcy you will lose your home, car and other possessions, your credit score and professional life will be affected. If you feel that you're at the end of the rope financially and find no option to deal with your debts, you should consider BANKRUPTCY − it is the quickest way to GET OUT OF DEBT! However there are other alternative to help you get debt free. An Individual Voluntary Arrangement (IVA) is a realistic alternative to bankruptcy which the government introduced as part of the Insolvency Act 1986 to give people a second chance. It is a legally binding structured repayment plan which benefits both you and your creditors. An IVA usually lasts for 5 years and you could potentially have up to 75% off your debt written off.

Bankruptcy UK − Lose All Your Debts And Start Fresh!

When you've filed for Bankruptcy all your possessions and all the income you receive from various sources will be combined into lumpsome which will be used to pay your creditors. Bankruptcy allows you to partly repay your outstanding bills and when you have repaid the agreed amount, you are DEBT FREE.

So how do you find out if you qualify for bankruptcy? Bankruptcy petitions are presented by a creditor who is individually or jointly owed £750 or more. However you can file for personal bankruptcy if you feel that you have no realistic chance of repaying the debt.

So you have filed for bankruptcy …What restrictions would you face?

• You can't obtain credit for any amount more than £500 without informing the lender that you're bankrupt
• You stand to lose some positions of authority in case you're a high ranking officer
• You can't continue as a director of a company while you're bankrupt
• Your name bankruptcy will be publicly announced in the local press