Bankruptcy Information
We have extensive bankruptcy information on our insolvency index page (visit personal bankruptcy), but basically; an individual or a creditor can apply for a bankruptcy order if the debt is at least £750.00. The amount of the debt must not be in dispute. If an individual owed you £800.00 for a service you supplied and would not pay you due to a dispute, you could apply for a bankruptcy order, however, the court would reject the order based on the debtor raising the dispute. The court will not allow an order if there is any doubt whatsoever as to the validity of the debt (even if the debtor is more than likely lying). If the individual could not pay you due to a lack of money, you would usually be successful.
Bankruptcy Advice
When seeking bankruptcy advice you should ensure the advice is specific to your situation. With Secured Creditors, Un secured Creditors and Preferential Creditors the path to bankruptcy can be rocky!
Bankruptcy Help
Deciding where to go for bankruptcy help IS as much of a problem as the potential bankruptcy it's self. However, the MAJORITY of individuals and businesses do NOT need to enter into a formal bankruptcy. We can offer you free bankruptcy help and advice to put you at ease:
More Bankruptcy Information
The usual time for a bankrupt to automatically be discharged is two years (if it is your first time as a bankrupt and unsecured creditors are less than £20,000), and three years if unsecured creditors are in excess of £20,000.
The purpose of bankruptcy is to convert your possessions, and any wages you receive, into lump sum and installment payments for creditors. A debtors purpose to apply for their own bankruptcy is to form a moratorium (a group of creditors) to agree part repayment of all outstanding debts, and when the agreed repayment has been met, to have a ‘clean slate’.
If you own your home you would be fortunate to keep it. You can keep household ‘essentials’: bed, fridge, heating appliances etc. But not, TV’s, video recorders, computers (unless used for work, or used to get work). All ‘tools of trade’ are protected, but will be scrutinized (a new transit van is not a necessity – buying a well used second hand van would be a likely suggestion from the bankruptcy trustee).
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