Advice on this subject is unfortunately now needed by more people than ever and this is mainly due to the current ongoing credit squeeze, and in part to credit card overspending.
Below you will find an overview of this debt solution as well as some useful facts and tips to help you before and after you go bankrupt.
Read on to see how this advice could be a step in helping you with your debt problem.
What is bankruptcy?
Bankruptcy, subject to some restrictions, allows you to wipe your debts and obtain a fresh start. You will lose control of your assets and an Official Receiver will be appointed to investigate your affairs leading up to the bankruptcy. You will usually be interviewed.
Bankruptcy will typically last a maximum of one year with many people being discharged sooner. During this period creditors will not be able to commence legal action without the leave of the court. Once you are discharged you are officially cleared of your bankruptcy debts.
If you are thinking of going bankrupt to deal with your debts then it is important that you fully understand its consequences and seek bankruptcy advice
Some more free bankruptcy advice and facts
It is a myth that you automatically lose your home. There are ways in which you can keep it, particularly if there is no or little equity. Make sure that you seek advice about your assets and make good use of the free bankruptcy advice available.
You do not lose all your assets as some are exempt. Exempt items include books, tools, vehicles and other items of equipment used personally by you in your business or employment.
Clothing, bedding, furniture, household equipment and provisions necessary for satisfying the domestic needs of your family are also exempt.
An income payments agreement may be required. This involves you having to pay over between 50% and 70% of your surplus income for a period of three years. This can only be put in place before your discharge and only if your surplus income is large enough.
Bankruptcy does not clear all debts,
though for most people it will.
Only a few professions are affected by bankruptcy. You should check your employment contract to see if there is a contractual obligation for you to disclose the bankruptcy to your employer and consider how this may affect your future earning ability.
You can recover from bankruptcy.
This can be achieved by understanding how the consequences of bankruptcy will affect you in the long term and by tackling those obstacles early on.
You may be able to get a mortgage after bankruptcy, unfortunately a higher deposit will be required.
To aid with your credit repair there are
that are willing to lend to bankrupts. Be warned though, there will be high interest rates and your credit limit will start low.
You can start another business the day after your bankruptcy though you must comply with the relevant bankruptcy restrictions that are placed upon you and understand how the bankruptcy may affect you in relation to property that you acquire after bankruptcy but before your discharge.
Bankruptcy is a fresh start, make the most of it. Be sure to use the Internet to establish how you can
stop money vanishing. Money is better in your pocket than someone else’s. Make good use of this free bankruptcy advice.
Please remember that before you take any course of action for dealing with your debts that you must seek advice. This article only provides an overview of some aspects of bankruptcy.
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