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 other routes to dealing with your debt, please see our page on IVAs, or call us free on 0800 019 5870 to speak to a specialist advisor who will be able to determine the best solution for you.
Whether or not you are made bankrupt is determined in Court after a petition has been presented by either you or your creditors. 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.
Once they have details of your financial position, such as any assets that you own and your disposable income, they will call a meeting of your creditors 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 that 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 bankruptcy is a legal issue and consequently there are serious implications which cannot be avoided.
Take the One Advice 1 Minute Debt Test to see what debt solutions are on offer, or please contact one of our specialist advisors who will be able to assist you further on: 0800 019 5870.
In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted. Always take expert advice from an Insolvency Practitioner.