Is Bankruptcy the Right Option for you

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Is Bankruptcy the Right Option for you

In the UK, the latest insolvency statistics showed that in the last quarter 40,000 individuals entered an insolvency solution. A great majority of these were either declared bankrupt, or made themselves bankrupt.

A trip down to your local county court on a morning will make you aware just how many people are seeking the debtors bankruptcy petition route. On a trip to Leicester last Thursday, at least 8 people on the one morning went bankrupt.

So why did they do it?

A typical example will be an individual who has built up a large amount of debt. I have seen amounts from £12,000 up to £190,000. Each of those in debt will see no prospect of being able to ever pay that debt back. The individual may be employed or unwaged. It doesn’t matter for bankruptcy purposes how much income you have in. If you are claiming some benefits you may be able to get help with the court fee that needs to be paid to start the process.

Most people who go through the bankruptcy process have little or nothing in the way of assets. Perhaps they will have a car, but generally this will be of little value. You can keep any vehicle with a value less than £2,000 if you need it for work.

They may also have a house, but again generally this will have negative equity. If your property has little or no equity the Official Receiver (OR) will be happy to transfer it back to you for £1 plus his legal costs of about £450.

You will need to show the OR what income you have coming in and what expenditure you have. This is so he can see if you need to make him am payment out of your income. If you use someone experienced to help you complete your forms, the likelihood is that you would not pay the OR anything.

You cannot be a company director for the 12 months that you are automatically bankrupt for. You can be a company director after your discharge.

For the great many people, with large debt and little by way of assets, whether they are employed or not, going bankrupt will have very little effect. There is no stigma anymore in going bankrupt. The credit file will be affected for six years but it would with any other debt solution such as an IVA or debt management.

If you would like further information tailored to your own circumstances, seek professional advice.

Information provided by Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
For Steve’s thoughts see http://steves-debt.blogspot.com

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/is-bankruptcy-the-right-option-for-you-1143085.html

The Fear Of Bankruptcy Is It Misplaced (refinanced.blogspot.com)
Record Numbers Go Bankrupt In First Quarter (news.sky.com)
Bankruptcies rise to record high (guardian.co.uk)
Company failures are ‘tip of the iceberg’, experts warn (guardian.co.uk)
They said this quarter would be bad… (newspaperdeathwatch.com)
Suggestion For Warner Music: Maybe Look At How Much You’re Paying Your Execs (techdirt.com)
’2m households in equity trouble’ (guardian.co.uk)
Up to 3.5 million home owners unable to move says John Charcol (telegraph.co.uk)
CIT warns of bankruptcy if debt deal falls through (dailyfinance.com)
Iceland: what ugly secrets are waiting to be exposed in the meltdown? (telegraph.co.uk)

Tagged with: bankruptcy, Business and Economy, Company, Debt, Financial services, Negative equity, Official Receiver, UK

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August 20th, 2009 | Category: Credit Card | Comments Off
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