Need Advice? Call us now on:

0845 050 1958

or

Request a Call Back
Debt Advice Recovery Farleys Solicitors

Bankruptcy

Bankruptcy Advice

We appreciate that the process of bankruptcy carries a dramatic and lasting effect. For both creditors and debtors it is a very difficult decision to choose to pursue this course of action. At Farleys, our experienced and professional team are on hand to offer you support every step of the way.

FAQs

What is Bankruptcy?

Bankruptcy is an insolvency process in which the court orders the realisations of an individual’s assets and distributes them amongst their creditors.

Process

You can apply for bankruptcy yourself or it can be done by your creditor, if you owe over £5,000 to them. You are able to make yourself bankrupt online.

You can be made bankrupt by a creditor if you:

 

The usual process is for a creditor to issue a Statutory Demand before issuing proceedings. Once the demand has expired, a petition can be issued and a hearing date scheduled. The Court will then determine whether or not the individual should be made bankrupt, and whether the correct process has been followed.

Once a petition is accepted and bankruptcy order has been made, the debtor will then be bankrupt, in most cases for a year. The Official Receiver or an Insolvency Practitioner will then be appointed as your Trustee and will manage the process by taking control of your assets.

Positives

  • Most debts can be included within the bankruptcy

  • You are afforded protection from creditors

  • It allows you to keep essential goods for living and trade

  • Can give you a fresh start

  • Managed by the Official Receiver or an Insolvency Practitioner reducing the stress on you

Negatives

  • It will be difficult to obtain credit, as the bankruptcy will be on your credit file for six years

  • Your assets may have to be sold

  • Various contracts, including tenancy agreements, may be cancelled

  • It may make obtaining certain types of employment impossible

  • If your income is high enough, you may have to make payments into your bankruptcy for up to 3 years

  • It can affect your business as you are not able to be a company director without the Court’s permission

If you are looking for more information or guidance in respect of bankruptcy please get in touch as soon as possible. This is not an option recommended for everyone and it is best to seek the guidance of a legal / insolvency professional to ensure you are fully advised of your options moving forward.

Contact a Bankruptcy Solicitor

For a consultation with a bankruptcy solicitor, please call Farleys Solicitors now on 0333 331 4602 or contact us by email.

Related Articles

Debt Advice Recovery Farleys Solicitors

Debt Collection Changes “Could Save Lives”

Recently The Mental Health Policy Institute Charity, together with Martin Lewis, campaigned to change the rules regarding debt collection an...

Read More
Mark Skinner Associate Partner
Debt Advice Recovery Farleys Solicitors

Boris Becker’s Financial Problems Continue

I have previously written a blog about Boris Becker and his bankruptcy in 2018. Background Becker, who won three Wimbledon titles, was m...

Read More
Mark Skinner Associate Partner
Debt Advice Recovery Farleys Solicitors

Debt – How to Deal with Creditors in the Light of COVID-19

Please note: The advice contained in this blog is correct as of 22/04/20. Due to the ongoing nature of the COVID-19 outbreak, advice is subj...

Read More
Mark Skinner Associate Partner

Get in touch

Request a Call Back

Call us now on:

0845 050 1958