Many people are unclear as to what bankruptcy is and whether they should, or could, apply for it. Simply put, bankruptcy is one method of dealing with debts and loans you cannot pay. By filing for bankruptcy you free yourself from overpowering debts so that you can make a fresh start. Of course, this is subject to a few restrictions and you have to make sure that your assets are shared out fairly amongst your creditors and family. Anybody can go bankrupt, even people who are part of a partnership where the other partner does not wish to go bankrupt. However, you should be aware that there are different insolvency procedures relating to business bankruptcy and partnership bankruptcy.
You can present a bankruptcy petition to the court yourself, after seeking bankruptcy help. Alternatively, one or more creditors who are owed at least £750 by you can present the petition. After hearing the petition, a court will then (hopefully) make a bankruptcy order. Even if you don't agree to or refuse to acknowledge the bankruptcy order, the order can still be made. That means you should be as cooperative as you can from the outset. If you have a dispute with your creditors, you should try and get this resolved before the court hears the petition. Otherwise, it can prove to be expensive and difficult to protest afterwards.
If you are thinking about going bankrupt, you should consider getting bankruptcy help first. Bankruptcy help can steer you in the right direction if you do, in the end, need to apply for bankruptcy. Seasoned professionals are available to help you and they are normally very friendly and not condescending at all.
Getting bankruptcy help is probably your smartest move if you find yourself in financial difficulty. Don't be embarrassed by your situation. You are not the first person to declare bankruptcy and you certainly won't be the last. Hundreds of people have been in the same situation. The ones who sought help are the ones who came through their bankruptcy stronger and more resilient.
It is important that you get the ball rolling as soon as possible when you are in financial distress. You have to seek out help, research your alternatives, and speak to professionals who know what you're going through. Although declaring yourself bankrupt can be an emotionally taxing time, you should look at it as a way for you to learn from your mistakes. Nobody is perfect, and you won't be judged if you come clean at the first signs of trouble.
An alternative to filing bankruptcy is taking out a consolidation loan. This will enable you to pay off all your debts faster and with a smaller monthly payment. This means that the money you owe will be paid off, and you can rest easier at the end of every month.
Remember! You should always seek help if you are in monetary trouble. Don't try to get out of paying back the money you owe, and definitely don't avoid your creditors. You will only end up in trouble if you do.
By Fiona McLaren