The first thing to do before you start the bankruptcy process is to make sure that you have fully researched the alternatives and taken expert advice from an Insolvency Practitioner, as only then will you know if bankruptcy is the best option.
One Advice are able to talk you through the bankruptcy process, as well other routes to dealing with your debt. For further information about how to deal with any aspect of the bankruptcy process, please call 0800 048 1752 to speak to a specialist bankruptcy advisor.
Whether or not you are made bankrupt is determined in Court after a petition has been presented by either you or your creditors; this is one of the key beginnings of the bankruptcy process. The order can be made without your consent and regardless of whether or not you agree to the proceedings.
On the making of the Bankruptcy Order, an Official Receiver (a civil servant and an Officer of the Department of Trade and Industry) will be appointed to administer your Bankruptcy. They will require full details of your financial circumstances and may require a face to face interview.
During the bankruptcy process, you will have to give details of your financial position, such as any assets that you own and your disposable income. A meeting of your creditors will then be called to explain the situation. If you have any assets which can be sold to repay your creditors, a Trustee (an Insolvency Practitioner) will be appointed to deal with this part of the bankruptcy process.
The Trustee or Official Receiver will also apply to Court for an Income Payments Order if it appears that you have available surplus income. This Order will be in force for three years even though you may be legally discharged from your bankruptcy after one year!
Details about your bankruptcy order will be published in your local or even national newspaper! The Official Receiver will also notify any other financial associates about your situation, such as utility suppliers and landlords.
The bankrupt will no longer have any control of their finances or their assets, as this is all done by the official receiver or trustee. The only assets that remain are those required for a basic standard of living, such as tools for employment.
You should always remember that the bankruptcy process is a legal issue and consequently there are serious implications which cannot be avoided.
Take the 1 Minute Debt Test to see what debt solutions are available, or please contact one of our specialist advisors who will be able to assist you further with the bankruptcy process: 0800 048 1752.