Some of the important considers you must take into account when worried about or applying for bankruptcy.
Considerations & Restrictions
Whilst there are benefits to becoming bankrupt, there are also important considerations you must take into account.
The two main types of bankruptcy petition are; creditor application when someone applies to make you bankrupt; and debtor petition – when you apply for yourself.
A district judge considers the bankruptcy petition to decide whether or not to make a bankruptcy order; once the order is made, you are officially bankrupt.
Official Receiver & Trustee
An explanation of the roles of the Official Receiver & Trustee in administering a bankruptcy order.
What is likely to happen to your bank account when made bankrupt; how balances or overdrafts are dealt with and your options to maintain banking facilities.
Payments From Income
How much you are likely to be required to make payment towards the bankruptcy; for how long and what this depends on.
Debts Not Written Off
Bankruptcy does not clear all debts in all circumstances. You may still be liable for some debts, even after discharge from bankruptcy.
When made bankrupt, you surrender all possessions of value, including any interest in your home. Control of everything you own passes to the court.
If you own (or jointly own) your home, mortgaged or outright, your interest in it forms part of your estate and may have to be sold to go towards paying debts.
Like any other asset, your car can and will be sold towards paying your debts when you are made bankrupt. However, there are exceptions.
Bankruptcy Restriction Orders
If you’ve been blameworthy in contributing to your bankruptcy, or are attempting to hide assets, an application to extended the bankruptcy can be made.
In certain circumstances, a bankruptcy order can be reversed or annulled by Court Order.