What is Bankruptcy?

Bankruptcy is probably the most well known solution to debt problems. It is a method of dealing with debts that you are unable to pay. By becoming bankrupt you can free yourself from your debt problems while at the same time ensuring that your assets are shared out fairly between your creditors.

Benefits and Advantages of Bankruptcy

For a person looking to overcome debt problems bankruptcy has several benefits. In bankruptcy an Official Receiver or nominee is appointed to deal with your finances on your behalf. You will receive Court protection from any further debt recovery actions by your creditors. On completion of the bankruptcy period you are free to start afresh with your debts cleared.

Applying for Bankruptcy

The bankruptcy process begins with a bankruptcy petition being presented to the Courts. This petition can be presented either by yourself or by any of your creditors providing they are owed 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.

As part of the Spencer Hayes group of debt relief advisors we can assist you with all aspects of bankruptcy. To find out more about bankruptcy and its alternatives call us today on freephone 0800 043 73 60 or complete our enquiry form.