What Is The Bankruptcy Process in The UK?
Bankruptcy can be complex and difficult, and many people just don’t appreciate what is involved. In layman’s terms, this article looks at the process, who is involved and the implications for the person declared bankrupt and how to find a good solicitor to help you in the process.
There is not just the legal process of bankruptcy to consider but alo the difficult and traumatic aspects. So for those reasons it is Essential to find a good solicitor to make sure that the legal aspects of the case are dealt with fairly and that you have representation. This is more than a mere technicality - declaring bankruptcy is very serious.
The decision as to whether you are bankrupt is made by a court. You or your creditors petition the court to declare you bankrupt. You can actually be declared bankrupt without your consent, if your creditors file for your bankruptcy. Quite an unpleasant thought!
The court will appoint an Official Receiver once you are declared bankrupt. The Receiver will judge (after an interview) how much money you have an whether you might sell any assets or raise more money. An Insolvency Practitioner or Trustee will be appointed to sell your assets, if you haveany.
You have to remember that you don’t control your assets or finances any more - the Receiver/Trustee does this.
An official Income Payments Order can be applied for by the Trustee if you seem to have surplus income. That order remains in place for 3 years, but you can be legally and officially discharged from bankruptcy after only a year.
Note that bankruptcy is public news. bankruptcy details are published in both local newspapers and sometimes national ones too. Any ‘Financial Associates’ you have (eg utilities etc) will be told of the bankruptcy, and this will impact future financial decisions you can make, eg mortgages etc.
finding a great solicitor will mean that your voice is heard and that the process is fair to you. It can help to feel you have some control of this difficult and trying time.
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