Bankruptcy Explained
Bankruptcy is not an option for any individual that is to take lightly in fact it has a number of disadvantages.
Sometimes an individual who cannot pay their debts as and when they are due is put under pressure and will take on more debt which can in the long term result in bigger debts that they cannot afford.
Bankruptcy is a solution that works with 2 aims –
- To release the pressure of creditors and enable you to make a fresh start subject to some restrictions.
- Also to ensure that any assets owned by you (such as property and investments) are distributed fairly among all of your creditors.
The Courts are officially responsible for making a bankruptcy order against any individual, although this is done at the request of either the individual or one of his or her creditors and could result in the loss of your bank account.
The assets of the bankrupt individual then fall under the control of a trustee. This will be the Official Receiver (a civil servant and officer of the Court), or a licensed Insolvency Practitioner. Whoever is appointed becomes responsible for uncovering as much as possible about the debtor’s assets and liabilities and then maximising returns for the creditors from the assets available, within certain legal guidelines.
Once a bankruptcy order has been made against you your creditors can no longer pursue you for payment. Payment becomes the responsibility of the Trustee.
Confused Debt lists a number of trusted and vetted companies that offer bankruptcy services. If you would like to talk to any one of them please try our compare calculator and we will get someone to contact you as soon as possible.
