For help and advice contact Sheffield 0114 2859500 or Rotherham 01709 331300
You could be declared bankrupt as a result of a petition being presented to the court, usually because you are unable to satisfy your debts. A creditor can present the petition, or you can petition the court yourself.
In the event of a successful petition, your assets will be entrusted to a ‘Trustee’, a person appointed to administer your financial affairs. The Trustee will initially be the Official Receiver who may pass your case to a licensed insolvency practitioner. The Trustee’s role is to sell your assets and then use the monies raised to make a distribution to your creditors.
Some of your assets are excluded from the bankruptcy order. These typically include assets that are required for your essential day-to-day living. If you receive an income, then an Income Payments Order (IPO) may be made against you for up to three years.
The is right choice for you?
Whilst the stigma of bankruptcy has faded in recent years, particularly following the financial crash in 2008, there still remain serious implications for the individual. For example, you may be subject to a Bankruptcy Restrictions Order (BRO) which may place restrictions on your ability to borrow money or act as a company director.
To understand the full implications of choosing bankruptcy as an option call us today on 0114 285 9500.