Your Debt Questions Answered – Bankruptcy
When people get into debt and call the Help With Debt Helpline, many of the questions that they ask revolve around the subject of solutions. Our callers want to know what a particular solution may mean to them.
The major debt solutions we can assist with are
Bankruptcy
Individual Voluntary Arrangement
Debt Management
Debt Consolidation
Bankruptcy
What is the cost of going bankrupt?
The fees payable to the court in cash are £510 being a £150 court issue fee, and £360 Official Receiver’s deposit. For many seeking to go bankrupt, the court fee is not payable due to exemptions which exist to remit fees.
How long does the process of making myself bankrupt take?
You need to complete a Petition and Statement of Affairs and take them to court to be checked and issued. Filling in the forms can be time consuming and complicated. We can help you fill in the forms. Some courts will make a bankruptcy order on the day you take the papers and fee in, others will ask you to come back the next day, others still will make you book an appointment many weeks in advance. If you are in any doubt you will need to speak to your local court. If you wish we can take on this process for you for a small fee.
What will happen at court?
At court you will be asked to go through your documents with the court clerk. If it appears in order, the clerk will ask you to sear that the contents of it are true. Once this has been done and you have signed your papers, you will pay your fee, which must be in cash.
Depending on the court system you may or may not be required to se the judge. If not he will simply review the papers and make an order.
If you have to se him he will ask questions on how you became insolvent, if you have taken advice and if he is satisfied that it is right to make the order he will do so. We can take you through this process for a small fee.
What happens after court?
After the bankruptcy order is made, you will be called by the Official Receiver, who will explain his role. He may ask you to come in and see him, so he can ask questions arising from the petition. This interview can take anything from 1-3 hours.
Can I keep my car?
If your car is needed for work or to find a job, and it has a value of less than £2000 you will be allowed to keep a car. If it is worth more than £2000, you will be asked to hand over the car, and you will be given £2000 to buy a replacement.
Can I keep my home?
If you are in rented property, your agreement may allow the landlord to ask you to leave. In reality a landlord will allow you to remain if you pay the rent as obliged in the tenancy. A landlord will jot want an empty property.
If you own a home, then the part owned by the bankrupt will “vest” by law in the Official Receiver. That means in effect he will own your share and can dispose of it. If it has no value to him, ie it has little or negative equity he will agree to transfer it back you or a spouse for £1 plus his costs, which are up to £500.
If you have negative equity and you cannot afford the mortgage or do not want to stay in the property, you can hand the keys back and the negative equity will be written off in the bankruptcy.
What are the effects of bankruptcy?
For the time you are bankrupt only, you will not be able to act in the management or as a director of a limited company. You cannot apply for credit over £500 without advising the lender you are bankrupt. There are some jobs that you cannot do or positions you cannot hold, such as a solicitor or MP.
How long am I bankrupt for?
You will be automatically discharged after 12 months. If you have been culpable in your bankruptcy, you can be the subject of a bankruptcy restriction order for up to 15 years.
- If you would like to know more about the bankruptcy option of dealing with debt, contact the Help With Debt helpline now.
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company. If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406 Visit http://www.helpwithdebtuk.com Article Source:http://www.articlesbase.com/credit-articles/your-debt-questions-answered-bankruptcy-1413899.html
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
