Is Bankruptcy right option for me?
Is bankruptcy right option for me? It may be used when an individual owes substantial amounts of money and is not able to repay.
A standard process for many people who owe a lot of money. Bankruptcy will clear all secured and unsecured debts. It is however, a daunting insolvency procedure.
Individuals experiencing bankruptcy have all their assets taken away by a ‘trustee’, and their value realised. All monies raised from the sale of assets then distributed between the creditors of the bankrupt.
Bankruptcy requires the debtor’s income examined. Then a repayment plan is drawn up based on affordability for the debtor once their normal household expenditure is deducted. Once the Bankruptcy ends (Normally 12 months), the debtor is then ‘discharged’, and ant remaining debt written off.
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Bankruptcy remains legally binding with future consequences, and not an ‘easy way out’. Being Insolvency specialists, and with a specialised bankruptcy team, HBG Advisory is qualified and experienced to help you reflect all the options available. Subject to your circumstances, an Individual Voluntary Arrangement (IVA) or Debt Management Plan may be better options to consider? It is important to explore all options before making a decision.
Any creditor owed more than £750 may apply to the Court to commence bankruptcy proceedings. However, you may dispute the petition. Therefore, please contact HBG Advisory immediately. We will support you by advising on the best action to protect yourself.
Is Bankruptcy the right option for you?
Bankruptcy should suit individuals who owe more than £15,000. (both secured and unsecured). The individual(s) must not make any repayment and:
- Do not own their own home or
- Accept the sale of their property to repay their debt.
- Usually, the term lasts twelve months.
- Substantial amounts of debt are then legally written off. Once discharged from bankruptcy, no additional money remains owed to the individual’s former creditors.
- Bankruptcy no longer has the stigma it once had.
- If you own your home or own assets? Then assets sold to repay your creditors;
- The debtors’ financial affairs require scrutiny and full disclosure;
- A notice in the London Gazette is posted along with local media and your credit file (remains on record for six years) advising of the Bankruptcy;
- Restrictions apply during the term of the Bankruptcy;
- You may be required to declare your bankruptcy to your employer or professional body.
How much money will I be required to repay?
Varies considerably and depends on your earnings and outgoings.
HBG Advisory provides ‘free’, no-obligation advice concerning bankruptcy. Our team is approachable, empathetic, and willing to take the time to listen to your concerns.
Commencing dialogue with a Licensed Insolvency Practitioner demonstrates you are taking a positive step to combat your uncontrollable debt and put yourself back in charge.
Is bankruptcy right option for me? The Bankruptcy Process
Stage 1: Application
Stage 2: Assessment
If the adjudicator makes you bankrupt:
Stage 3: Payments
- Assets you own then sold to pay your creditors.
Stage 4: Discharge
Once 12 months have passed. It is usually for an individual to be released (‘discharged’) from your bankruptcy restrictions and debts. However, assets remaining in your estate while in bankruptcy may still be sold to pay your debts.
When you do not live in England or Wales
The process, when living in Scotland or Northern Ireland, is however, different. You are unable to make an application to become bankrupt in England or Wales.
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