If you are struggling with your personal debts, Bankruptcy may be a feasible option to help you back on the path to a debt-free life. Bankruptcy for many people is the best way forward for their given circumstances, and can often be more appropriate than an IVA or a debt management plan.
Bankruptcy is a court-based procedure and you can either choose to petition for your bankruptcy or it can be enforced against you by one of your creditors if you unable to satisfy your debts. Your Estate will be placed in the hands of a Trustee, initially this being the Official Receiver who would be appointed by the court. His position as Trustee may be replaced by an external Insolvency Practitioner dependant of the value and complexity of you Estate. The role of the Trustee is to then realise your assets which will then be used to pay off your creditors. Excluded from your estate are your assets that are required for your essential day to day family living. If you receive an income there could be a possibility of an Income Payment Order being made against you.
Bankruptcy can be a very uncomplicated way of resolving your current financial situation. In the majority of cases, liabilities are extinguished on discharge after 12 months or sooner, unless the Trustee suspends your discharge due to your non-cooperation, fraud or being guilty of various Bankruptcy offences.
A creditor may petition for your Bankruptcy if he is owed more than £5,000. Alternatively, you can voluntarily file your own ‘debtor’s petition’ if you feel that there is no possibility of repaying your debts.
As a bankrupt individual, you have a duty to be fully transparent and assist the Trustee in enquiries relating to your financial conduct before the bankruptcy. DFW Associates can be appointed as Trustee, and we will act in the very best interests of all parties. We are also able to advice at any stage upon receipt of a Bankruptcy Petition, a Statutory Demand or if you are experiencing pressure from your creditors.