Bankruptcy — What Does it Mean and How it Can Benefit You?
Bankruptcy is a way of legally declaring an individual’s inability to repay the debts. Once you get the bankruptcy order, the creditors can no longer claim the money. If you think you can’t pay the remaining debt, Bankruptcy could be the right option. But, before getting bankrupt, it is important to check an alternative option. A high level of risk is associated with this debt elimination plan. Bankruptcy might have a serious implication in the debt payers life.
You might end up losing valuable assets if you violate bankruptcy’s norms. The creditors will clear off the unsecured debts when you get into this legal process. And, these include loans of credit cards, overdrafts, store cards, and benefit over-payments. Additionally, you can pay back the utility bills and cataloger debts as well. Though, bankruptcy Bankruptcy Advice is a completed legal procedure. But, it might be profitable for individuals who have a low monthly income.
Factors that are Checked before Filing a Bankruptcy
A bankruptcy form is given to the debtors after checking their credit history. If you have a poor credit score, you won’t be eligible for this debt settlement plan. Also, a bankruptcy order can cause an individual’s credit score to drop. As a result, you won’t be able to take further loans for 7-10 years. Therefore, it is important to understand its obligations before you file bankruptcy.
If you struggle to save a minimum amount of money at the end of the month, don’t go for Bankruptcy Advice. The best part about bankruptcy is that it puts an end to the debt payments. If you want to apply for bankruptcy for this legal process, consult with a bankruptcy lawyer beforehand.
The attorney will guide you throughout the procedure and the rules and regulations of bankruptcy. And, for bankruptcy, you need to:
- Explain the reasons for not making the monthly debt payments.
- Finalize credit counselling with a certified and experienced credit counselor.
- Take control over the finances.
- Look for an alternative option to bankruptcy.
- Opt for making a monthly budget plan.
Only after considering these factors, the debtors should proceed with bankruptcy. And, if you forget to add any debts in the bankruptcy application, don’t worry. Step To Changes will help you to include that without any hassle.
Understand the Consequences of Apply for Bankruptcy
Bankruptcy should not be an individual’s first option to get out of debts. Because, along with offering benefits, it also has certain disadvantages. Before making a decision, you should consult with a Bankruptcy Advice Experts . If you want to know more about this legal agreement, avail our debt services.
We have helped thousands of UK residents to repay their remaining debts. Our team has been serving this company for more than 25 years. After analyzing your financial condition, we will let you know whether you should go for bankruptcy or not. Our team will offer a few more feasible options to overcome this situation.
Here are the Bankruptcy Advice advantages and disadvantages of bankruptcy. Check the following points out to avoid further issues:
Benefits of Bankruptcy Advice
Once you get qualified for Bankruptcy Advice, you can avail a plethora of benefits. Though, many have faced financial difficulties after filing bankruptcy. But, the financial situation differs from one person to another. If you are unable to decide whether to apply for bankruptcy order or not, contact bankruptcy UK.
We will arrange a free consultation with experienced advisors to discuss this process. Here are the benefits you can expect from a bankruptcy order:
- With bankruptcy, the debt payer can clear off the unsecured debts within 12 months.
- Creditors will stop pestering you with calls or letters from debt collecting agencies.
- You no longer have to deal with the creditors, and they can’t claim the money.
- No additional charges or interest rates will be added to the debts.
- If you are living in a rental property, the creditors can’t possess that.
- The debtors can use their car while travelling from their workplace to home. But, if the vehicle’s value is more than £1,000, you can’t use that.
- No further legal actions can be taken against the debtors.
- You no longer need to worry about losing valuable assets in Bankruptcy Advice.
Risks of the Bankruptcy Order
Though bankruptcy lasts for a year, it might have a lasting effect on an individual’s finances. Thus, you should think twice before filing bankruptcy. If you apply for bankruptcy, make sure to acquire enough information about it. Lenders can foreclose your properties like houses or vehicles. But if you don’t have your own house or car, then bankruptcy will be the best option.
Moreover, there are different types of bankruptcy available for UK residents. To know which one will be right for you, connect with us. Our team will illustrate the risks of each bankruptcy plan. Here are some potential disadvantages of Bankruptcy:
- All the information on Bankruptcy gets registered in a public report.
- Debts like student loans or court fines can’t be paid with bankruptcy.
- You can’t repay the overpayment of benefits and child support with it.
- Debtors can’t take a loan amount of £650 until the bankruptcy period gets over.
- The directors of any company can’t apply for bankruptcy.
- An individual can’t trade a business in someone else’s name.
Moreover, bankruptcy can have implications for certain job roles. Once you file for bankruptcy, you can’t become a member of parliament. This legal process restricts a person to become a legal practitioner. You may not become a Chartered Accountant if you have applied for a bankruptcy order. Even you might not act as a member of local authority or a justice of the peace.
A record of bankruptcy remains in the credit file for six years. It will also be reported on the Insolvency Register. If you get any surplus income of £20 or more than that, it will be recorded in the Income Payments Order. And, you have to pay this to the Official Receiver each month for straight 3 years.
What is the Process for Applying for Bankruptcy?
Submit an application to the Insolvency Service in England for filing bankruptcy. If you are a resident of Scotland, send an application to Accountant in Bankruptcy. The people of Northern Ireland need to submit the application to the High Court. And, the natives of Scotland can apply for a bankruptcy order to the Insolvency Service.
Here is how you can file for Bankruptcy Advice in the following countries:
- First, check if they are eligible for bankruptcy or not.
- Check whether you need this debt solution or the debts can be paid in another way.
- Collect the necessary financial documents like bank statements, tax returns or income certificates.
- Consider your financial situation and make sure you won’t get any surplus funds.
- Contact a credit counselor and check if bankruptcy would solve the financial problems.
- Provide the required debt-related information in the bankruptcy form.
- Know what will be the fee for filing bankruptcy.
- Print the bankruptcy application and submit that to the court.
If you face issues while filling up the bankruptcy form, let us know. Our team will help you to complete the bankruptcy filing process. Use our online debt advice tool if you need to know more about this debt solution. Our expert advisors will explain the step by step process for applying for bankruptcy in detail.
How Does Bankruptcy Work in the UK?
In the United Kingdom, an individual can go bankrupt in two ways. You can either file for your bankruptcy, and this is known as a “debtors petition”. Or, a creditor can make you bankrupt if you owe more than £5,000, which is known as a “creditors petition”. Although, 80% of debtors avoid bankruptcy for its risk factors. But if you want a fresh start, it will be the best option.
Frequently Asked Questions
You might have various questions about filing bankruptcy, Step To Changes can help you with that, as we have a team of experts who have been dealing with this problem for years.
If you want to apply for bankruptcy, you should have evidence that makes it clear that you can’t pay the debts. The adjudicator might cancel the bankruptcy order if he thinks you can pay them back. The best way to find out if you qualify for bankruptcy or not is to talk to our experts. We strive to help our customers in their time of need.
The fees for applying for bankruptcy might vary from one county to another. If you live in England or Wales, you need to pay £680. It includes the adjudicator and official receiver’s fees as well. But, if you are a resident of Northern Ireland, the bankruptcy cost could be £683 including the court solicitors’ fees.
If you don’t follow any bankruptcy rules, the bankruptcy restrictions might be extended. Even the official receiver can request the court authorities to give you a BRO. But, this is a rare instance and only happens when someone hides any information. If you have been dishonest during the bankruptcy period, the official receiver can extra money.
Many debtors consider bankruptcy as the only option to clear off their debts. But, there are many other solutions available for UK residents. First, negotiate with the creditors about reducing the monthly debt payment amount. If they disagree with that, go with Individual Voluntary Arrangement. With this debt solution, you can make affordable monthly payments.
Everyone can’t apply for joint bankruptcy in the United Kingdom. This debt solution is available for those who run a business in partnership with someone. You can include your business partners in the bankruptcy petition. But, this might affect their credit score. So, we would recommend not to go this bankruptcy option, if not required.
Listen to Our Experts!
If you want to file for bankruptcy, certain factors need to be considered. Make sure to gather in-depth information about this solution before apply for bankruptcy for it. After visiting our site, go to “personal bankruptcy guides” to know more about this process.
Moreover, our debt advisors are available round the clock to assist you. If you have any queries or questions regarding bankruptcy filing, feel free to contact Step Change Contact Number. You can even chat with our customer support executives regarding this.
