Bankruptcy, what is it? And is it for you?
What is it?
When most people hear the word Bankruptcy the first thought that comes to mind is simply someone that had no money.
What Bankruptcy really is is a debt solution as well as a form of Insolvency. This legal procedure is suited to people who are very unlikely to pay off big amounts of debt in a reasonable time.
Bankruptcy can either be declared by you or can be forced on you if you are unable to pay your debts.
How will it affect you?
Before taking bankruptcy into consideration it is important to understand what exactly will happen, and how it will affect your assets, money, housing and more.
Whether you lose your home when declaring bankruptcy depends on a couple of different factors.
Whether you rent your home - it is unlikely you will lose your home
Whether you own your home - you could be forced to sell your property in order to pay off your debts
Whether someone lives with - You could delay the selling process.
The decision of whether you get to keep your home is up to the official receiver.
Here is a list of items which cannot be sold by the official receiver.
household equipment, such as a cooker
tools and equipment for your job - if you use them yourself rather than lend them to someone else
a car or other vehicle you need for work or your basic needs - for example, if you’re disabled and can’t go anywhere without a car
a car or other vehicle you need to care for a dependant
Here is a list of belongings which they can take.
jewellery - you can keep your wedding ring if it’s a plain gold ring
leisure equipment, such as games consoles and cameras
Of course, there are always exceptions.
So what will happen to your job if you declare bankruptcy?
Again this depends on what your profession is.
The fields which are affected the most are self-employment and the financial sector.
What you need to do to declare bankruptcy.
You will need to pay a £680 fee and complete an application
Click here to find out more
How Silver Insolvency can help you!
We have over 40 years of experience in the industry and can help you solve issues, which feel impossible to face.
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