Bankruptcy

The decision to file for bankruptcy is understandably a last resort when financial issues have spiralled out of control. It is a big decision to make, but can help to put an end to issues caused by considerable debt.

If you have a large amount of debt and want to discuss how bankruptcy could help you, contact Clough & Willis today. From our offices in Bolton and Bury, we have helped many people handle their debts, providing support and advice at this difficult time.

To discuss your situation in a free, no obligation chat, call us on 0800 083 0815, or fill out an online enquiry form and we will get back to you at a more convenient time. 

What is bankruptcy?

Bankruptcy gives an individual the chance to get rid of their debts by using their assets, such as possessions, property and income to make payments and contributions in settlement of debts.  In order to apply for bankruptcy, you  will need to make an application on-line, it is no longer possible for you to apply to the court but you will still have to pay fees. These are less than under the previous procedure and can be paid in instalments.

Once your application has been accepted an Adjudicator within the Insolvency Service will make a bankruptcy order so there will be no need to go to court but the case will still transfer to the Official Receiver in the same way as it does now. The Official Receiver's office is part of the civil service.

What happens if I am bankrupt?

When a bankruptcy order has been made, the person affected must provide the Official Receiver with information relating to  their  financial affairs, including a list of  assets, outstanding amounts of each debt and  details of all creditors. 

The Official Receiver's job is to make sure that any assets are held or realised for the benefit of the creditors this can include property, bank  accounts,  insurance policies   and any other savings or items of value. If they think that there are assets to realise they may seek to appoint an insolvency practitioner in private practice to act as Trustee in Bankruptcy and it will be the Trustee's job to take control of any assets and ultimately make payments to creditors where appropriate. Any assets and income increases that are obtained during the bankruptcy should be declared to the trustee.

Whilst you remain bankrupt   you must not obtain credit of £500 or more from any person without first disclosing the fact that you are bankrupt. 

How long does bankruptcy last?

After an bankruptcy order has been made  you may be discharged and freed from obligations under the order - in 12 months or less. If you are discharged, you will be released from most of the debts owned at the date of the bankruptcy order. However, there are exceptions, including debts that have arisen from fraud, fines or certain crimes.

In addition, other debts - such as damages or personal injury - will be released, but only if this is agreed by a court. 

Speak to the team

If you are living with spiralling debt and are unsure where to turn, it could be time to speak to a solicitor about your circumstances. Located in Bury and Bolton, Clough & Willis is dedicated to finding the right solution for you, and we will provide support and guidance every step of the way.

Contact us by calling 0800 083 0815, or fill out an online enquiry form on the side of this page and a member of our team will get back to you. 

 

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