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For people with serious debt problems bankruptcy is often seen to be a 'last resort' option, however in many cases it is also the most suitable.

What is Bankruptcy?

Bankruptcy is a method of dealing with debts that you are unable to pay. Becoming bankrupt is a way of freeing yourself from serious debt problems while at the same time ensuring that your assets are shared out fairly between your creditors. Bankruptcy is available to anyone subject to some restrictions.

Being made Bankrupt

The bankruptcy process begins with a bankruptcy petition being presented to the court. This petition can be presented either by yourself or by a creditor to which you owe at least £250. After receiving the petition the court can either issue a bankruptcy order, dismiss the petition, appoint an Insolvency Practitioner to deal with the debt, or if more information is needed the proceedings may be delayed. A bankruptcy order can be made even if you dispute or refuse to acknowledge it.

Bankruptcy Fees

When becoming bankrupt there are three fees that you may be required to pay. These costs are a court fee of £120, a deposit of £250 to cover the costs of administering your bankruptcy and if being dealt with by the High Court there is an additional payment of £7 for the swearing of the statement of affairs.

Advantages of Bankruptcy

For a person looking to overcome debt problems bankruptcy has several benefits. The Official Receiver or a nominee will be appointed to deal with your financial affairs on your behalf. You will receive Court protection from any further debt recovery actions by your creditors. The bankruptcy will last for one year at the end of which you are able to start afresh with most if not all of your debts cleared.

Disadvantages and Implications of Bankruptcy

Being made bankrupt does however have a number of negative consequences associated with it. For example any valuable assets including your home may be sold to repay your debts. Additionally the Bankruptcy Order will be publicised in your local newspaper and your credit rating will be affected making it more difficult to obtain credit in the future. As a bankrupt you will be restricted from certain professions including being an accountant, lawyer or company director.

How We Can Help You

Debt Consolidation is part of the Guardian Insolvency Group of Companies. Guardian Insolvency is one of the UK‘s Leading Insolvency Practitioners – completely dedicated to helping you overcome your debt and insolvency problems.

All of our staff members are highly trained to help people meet their goal of long term financial stability. Our teams of Licensed Insolvency Practitioners and specialist debt advisors are professionally bound to provide immediate, completely impartial and confidential advice to consumers across the UK.

If you are having financial problems and would like professional assistance then contact us today and allow us to help you. Either call us on freephone 0800 043 50 43 or alternatively complete our debt advice enquiry form.

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