Bankruptcy
If you do not have sufficient resources to put an IVA in place, you could be forced to declare bankruptcy. Bankruptcy will free you from your existing debts and but divide all of your assets among your creditors. The bankruptcy process can be initiated in two ways:
- A Debtor's Petition which is a petition submitted by you to the court.
- A Creditor's Petition which is a petition submitted by one of your creditors. You must owe the creditor more than £750 in order for them to force you into bankruptcy using a Creditor's Petition. If you are served with a Creditor's Petition might want to settle with the creditor before the court forces you into full-scale bankruptcy.
If a Bankruptcy Order is served, the order will be advertised in newspapers and an Official Receiver is appointed. The receiver's job is to take control of your assets and to protect their value until they can be monetized to pay your creditors.
A Bankruptcy Order is a serious step because you will lose complete control of your finances. The Official Receiver will take control of your bank accounts and will control the repayment of all your debts. He will decide what clothing and household items you can keep and which ones you must sell to pay your creditors. You should only declare bankruptcy after you seek professional advice and explore all your alternatives.
Use our personal loan instant quote service to begin your research into both secured and unsecured loan alternatives today!
You will be discharged from bankruptcy in three years or when you repay all your obligations and legal expenses. If you have not carried out your duties or if you have been bankrupt before, it might take longer to be discharged from bankruptcy.
A record of your bankruptcy will remain on your credit file for 6 years.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE. All loans are subject to status. Written quotations are available directly from the lender on request to the lender. A broker fee might be due on transactions completed through this site.
|
.gif)
