What is bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings Can free you from overwhelming debts so you can make a fresh start, subject to some restrictions and make sure your assets are shared out fairly among your creditors. Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves. Separate leaflets about these insolvency procedures are available.
A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either:
by yourself (debtor’s petition); or
by one or more creditors who are owed at least £750 by you and that amount is unsecured (creditor’s petition).
A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order has been made is both difficult and expensive.
Bankruptcy petitions are usually presented at the High Court in London or at a county court near to where you trade or live. A petition can be presented against you even if you are not present in England or Wales at that time. This can happen when: you normally live in, or within the previous 3 years have had residential or business connections with, England or Wales.
Sometimes government departments start bankruptcy proceedings in the High Court in London or in one of the District Registries. If you did not trade or do not live in the London area, your case will usually be transferred to the appropriate local county court and, if a bankruptcy order is made, it will be dealt with by the local Official Receiver.
Once the bankruptcy order has been made, it is advertised in “The London Gazette” (an official publication which contains legal notices) and in a local or national newspaper (or both). In addition the Official Receiver will give written notice of the order to a number of organisations.
There are alternatives to going bankrupt, to find out more information please see the see the link on this page, and call an experienced Advisor.
Advanced Finance have many years dealing with clients with a bad credit history, and know of many ways of avoiding bankruptcy, however if bankruptcy is something that a client wants to do then Advanced Finance can help.
For more information on homeowner loans then please visit advanced-finance.co.uk
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