Consumer Money Worries - Personal Debt
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Bankruptcy is often the first thought when struggling with money worries; the reality is that there are other options to be assessed before taking the drastic step of bankruptcy. Bankruptcy is one option that may be a viable option and a way to get you back on track with your finances. In some cases, bankruptcy may be a more viable option as a pose to an Individual Voluntary Arrangement (IVA) or a debt management plan.
What is bankruptcy?
Bankruptcy is a solution that you can opt for as a consumer, or it can be enforced upon you by a creditor. Bankruptcy is usually applied when a consumer doesn’t or can’t pay back the monies owed for credit taken.
A bankruptcy process must be overseen by the courts initially and then put into the hands of a trustee who is officially appointed to manage your assets and financial affairs.
The trustee’s role is to sell assets in an attempt to recover monies on behalf of creditors.
Bankruptcy can be an efficient and straightforward way to resolve your money worries. In most cases, consumers are discharged from their bankruptcy and debts wiped off in 12 months, unless of course, there’s non-compliance and cooperation.
A consumer doesn’t have to wait for a creditor to force bankruptcy, a consumer can voluntarily opt for a ‘debtors petition.’ A creditor can apply a ‘creditors petition when they are owed £750.00 plus.’
When placed into bankruptcy, the bankruptee must assist the trustee with all enquires in conjunction with all financial affairs and conduct.
Should the official receiver believe it is appropriate to place the bankruptee into a Bankruptcy Restriction Order or an undertaking, restrictions will be put into place. These restrictions could last for between 2-15 years and are usually placed upon a bankruptee with non-compliance.
Consumer Money Worries can provide you with the help, guidance and support in identifying if bankruptcy is the best and right way forward.
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