If you want to know more about Bankruptcy and whether it would be the right solution for you, our friendly team is ready to offer all the advice you need.
We could also tell you about all the alternative debt solutions available to you, such as a:
Debt Management Plan
A solution that lets you consolidate debts into one, easier to manage monthly repayment.
Individual Voluntary Arrangement (IVA)
A legally binding solution that could help you write off debt.
Debt Relief Order
A solution that could free you from unsecured debts in 12 months if you are on a low income.
Going bankrupt essentially means that you have made the decision to file for Bankruptcy yourself. People reach this stage when they can no longer afford to repay their debts.
If you decide to proceed with Bankruptcy, you can choose to represent yourself or ask a professional debt specialist to handle your case. Baines & Ernst can provide a Bankruptcy Support Service which can make the application process much less stressful for you.
If you owe £5,000 or more and have a history of missed payments, then a lender could file a petition with the courts for you to be declared bankrupt. However, before they can do this, the lender must serve a Statutory Demand for payment within 21 days.
If the court grants the lender’s request, then this will result in you being made bankrupt.
If you have a history of missed or late repayments on your debts, then you could receive a legal notice called a Statutory Demand asking you to settle your debts in 21 days. A Statutory Demand highlights that your debts have now become a legal matter and should not be ignored.
If you cannot afford to settle your debts in 21 days, your lender could request that you are made bankrupt.
If you want to avoid Bankruptcy at this stage, then you must get the Statutory Demand set aside. You can do this if you:
- Dispute the amount on the Statutory Demand
- Think the Statutory Demand was made in error
- Have evidence that the amount is less than £5,000
- Think the lender did not follow the rules and procedures during the process
During the Bankruptcy process you will lose control of your assets, this could include your home if you are a homeowner.
Your home, along with your car and valuable belongings will be sold to help repay your lenders.
If you still have young children living with you at home, then you will be given up to 12 months to find suitable accommodation.
If you need essential items, such as tools for work, then these will not be sold and you will be able to keep them.