Bankruptcy is a mysterious process, and many people don’t understand it and how complicated it can be. In layman’s terms, this article looks at the process, who is involved and the implications for the person declared bankrupt and how to find a good solicitor to guide you in the process.

There is not just the legal process of bankruptcy to consider but alo the difficult and traumatic aspects. So for those reasons it is Essential to find a solicitors to make sure that the legal aspects of the case are dealt with fairly and that you have representation. This isn’t just a matter of fact – bankruptcy is a very serious matter.

The decision as to whether you are bankrupt is made by a court. You or your creditors petition the court to declare you bankrupt. Because your creditors can effectively file for your bankruptcy, this means that you can be declared bankrupt without your consent. It’s a scary thought!

After you have been declared bankrupt, the court will appoint an Official Receiver. Based on an interview, your money and assets will be determined by the Receiver, who will decide whether anything can be sold. Your assets will be sold by a Trustee or Insolvency Practitioner who will be appointed.

The Receiver/Trustee now controls your finance and assets, not you.

The Trustee can apply to the court for an official Income Payments Order, if you seem to have surplus income. The order is in place for a period of 3 years, but you could be discharged from bankruptcy after just one.

Note that bankruptcy is public news. bankruptcy details are published in both local newspapers and sometimes national ones too. Any ‘Financial Associates’ you have (eg utilities etc) will be told of the bankruptcy, and this will impact future financial decisions you can make, eg mortgages etc.

finding a great solicitor will mean that your voice is heard and that the process is fair to you. It helps you to feel in control of a difficult and traumatic process.

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