Overwhelmed by debts you have no way of repaying? Don't worry, there's hope for you yet. You can opt to file for bankruptcy. But before you request for a bankruptcy, here's some Bankruptcy Facts you need to know.
Any individual, even members in a partnership or dealing with investment banking can be declared bankrupt by the Courts whether or not they have a fulltime job. There are three ways for an individual to be made bankrupt: voluntarily, involuntarily, or automatically by an Individual Voluntary Agreement..
If you choose to petition for your bankruptcy yourself, your first step should be to consult legal or financial professionals. The can furnish you with more detailed Bankruptcy Information. You'll need to complete two forms: the petition itself, and the statement of affairs. The former states the reasons for your request that the Courts declare you bankrupt. The latter lists your assets and your debts, including information on your creditors. You'll need to present your petition within six months of completion, to the High Court in London, or in a county court that deals with bankruptcy proceedings. If you are filing for bankruptcy in a country that does not speak your native language it's important to get financial translation to help you translate the documents correctly, they are very important and you do not want to make a mistake on them just because of you are not familiar with the language.
Your creditor can also request that you be made bankrupt, as long as your debt is over £750. Even if you refuse to acknowledge the bankruptcy order, the order can still be processed and made. Itís usually best to cooperate with your creditor if he requests for your bankruptcy order, or try to reach a settlement before the order is made.
Bankruptcy may sound like an appealing option, especially since it frees an individual of his financial debts. You are also discharged after a year (or less). You have to keep in mind that there are downsides to bankruptcy, not the least of which is losing control of your assets. You cannot obtain credit over £250 or trade in any business, unless you inform all parties concerned that you are bankrupt. Your credit and reputation are also affected, even after you are discharged.
As a bankrupt, you will also have some duties to fulfill. Once the bankruptcy order is made, you'll have to get in contact with the Official Receiver. You have to surrender your assets, account books, bank statements, and debt papers to the Receiver. You'll be refrained from using your bank accounts and credit cards, and from getting credit of more than £500 (without telling the lender that you are bankrupt). Not cooperating with the Receiver could get you arrested.
Still, the peace of mind and fresh starts that bankruptcy offers may be the best option for some. Before you make any decisions, though, make sure you have all your Bankruptcy Facts and Bankruptcy Information straight.