Bankruptcy
This is the ultimate step - the last resort. It's a legal process that allows you to free yourself from overwhelming debts and make a fresh start by selling your assets and using the funds raised to pay your creditors. Any assets, including your home, may be used to pay creditors.
After a period, usually one year, debts are written off. After your bankruptcy ends your creditors can make no fresh claims against you, but if, for example, you have assets remaining that gain in value (such as your home), your creditors can still force the sale of those assets within a period of three years. This also applies to any assets you obtain before becoming discharged.
Although bankruptcy does not carry the same social stigma it did a few years ago, it does bring with it certain restrictions such as your bankruptcy being advertised in the local press, having your landlord informed, closure of your bank account, and in certain professions - including most positions in financial services - a risk of losing your job.
The bankruptcy remains on your credit file for 6 years.
Bankruptcy Annulment
A bankruptcy order can be annulled by the court if:
- You have repaid your debts and bankruptcy expenses in full, or
- You have provided full security to pledge to guarantee the debts, or
- You should not have been made bankrupt at the time the original bankruptcy order was created, or
- A creditors' meeting has approved an IVA proposal.
Even if you have been made bankrupt and have been discharged after 12 months, it is often in your interests to at least enquire whether this could be an option for you:
- Even when a bankrupt has been discharged after 12 months, if a trustee has been appointed then fees continue to accumulate and this can lead to the loss of your home and any saleable assets.
- Assets which you obtain before you become discharged will still be controlled by the trustee, who can deal with them at any time up to 3 years in the future.
- The bankruptcy remains on your credit file for 6 years
- Bank accounts are difficult to obtain
- You will not be able to obtain credit for £500 or more from any person without first telling them that you are bankrupt.
To see whether you would qualify for a Bankruptcy Annulment, please fill in the enquiry form so that an expert in this field can assess whether a successful annulment is possible for you..
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