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Increasing numbers of consumers are declaring bankruptcy every day but the upside is that bankruptcy proceedings are now straightforward and not to be feared. If you have explored all your alternative options and feel declaring bankruptcy is the best solution for your debt problems, then the following information will help you get started.
Also, don’t forget help is just a call away - you can ring the number above or contact us online for friendly bankruptcy advice and you are under no obligation at any time. Plus, by seeking our professional bankruptcy assistance, a bankruptcy judge will be assured you understand the severity of a bankruptcy declaration, which will dramatically help your case.
You must get into financial problems to claim bankruptcy - which sound like an obvious statement, but bankruptcy has often been mistakenly viewed as an easy remedy for any financial ill. The objective of bankruptcy is to clear away debts and at the same time receive protection from creditors. See About Bankruptcy | Questions | Truth | Advantages for more advice on how bankruptcy can help you.
Once you have decided to claim bankruptcy you should obtain a debtors petition.
If you are filing for bankruptcy yourself, ensure the bankruptcy proceedings are carried out properly. The bankruptcy form is known as a Debtors Petition. You will present the petition to either the High Court in London or the county court where you live. You will require two forms:
1) Bankruptcy Petition (form 6.27); and 2) Statement of Affairs (form 6.28)
The Bankruptcy Petition is your request for bankruptcy. The Statement of Affairs is for listing: assets, liabilities and creditors’ contact details. The latter form is also your declaration of solvency, which will be made under oath.
Both forms can be obtained through www.courtservice.gov.uk or at your county court.
We recommend you contact your county court to make an appointment for filing the petition.
The creditors may apply for bankruptcy proceedings. If so, they will file the petition, known as a Creditors Petition. Creditors can only file for your bankruptcy if you owe them more than £750.
If bankruptcy proceedings are started against you it means a creditor has filed a petition - but there is still time to avoid bankruptcy. In such instances seek bankruptcy assistance urgently. However, be warned, you can be declared bankrupt against your will.
Once you have filed your petition, a court hearing will be set. It is worth remembering that you are attending court as someone who has fallen into financial difficulties and not as a criminal. Courtrooms can be daunting but try and view it as step towards solving your money worries.
At the hearing you can expect one of the following outcomes.
1) A delay in the proceedings due to lack of information. 2) The Bankruptcy Petition will be dismissed. 3) An Insolvency Practitioner will be appointed to set up an IVA instead. 4) A Bankruptcy Order will be made and you will be immediately declared bankrupt.
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