Bankruptcies allow somebody who has got into serious financial difficulties to make a fresh start. It protects them from people to whom they owe money, but cannot afford to pay. However, it is a serious step so definitively is not something you should do lightly. You need to understand how it works to determine whether it is the right step you to take.
How Bankruptcy Works
Either you or one of the people you owe money to can declare you as bankrupt by filing a bankruptcy petition. This is done via the courts. It costs £700 to file a bankruptcy petition and the person who files the petition that pays these fees.
Once you have filed a petition you will have to attend a hearing. If the court agrees that you can proceed with the bankruptcy, an official receiver will be assigned to you. They will establish the full extent of your debts, as well as offering you advice about avoiding similar situation future. Anything that you own of value will be sold and the money from these sales will be split amongst the people you owe money to. Once this process is complete, you are free of any remaining outstanding debts.
However, there are pros and cons of following this process. Before taking this step is very important that you get good advice and fully understand the impact it will have on your future finances.
Getting Advice About Bankruptcy
Several debt management companies offer advice. However, not all of them offer sound advice. Therefore, it is very important to do your research and look for one that offers proper advice.
The best firms are accredited members of the Debt Managers Standards Association (DEMSA). They follow a strict code of conduct, which ensures that the advice you get is right for you. It is important to consider other options before filing for bankruptcy. For example, in many cases an individual voluntary arrangement will have less impact on your current life. Using this kind of arrangement it is often possible for you to retain your family home as well as freeing yourself from debt.
The bankruptcy advice Debt Free Direct offer is the best available. It is suitable for both private individuals and businesses.
