bankruptcy post petition
What is Bankruptcy
What is bankruptcy
Bankruptcy is a mechanism whereby a person can write off his debt, in return for handing his affairs to the Official Receiver. There are new rules in place now which means that someone subject to a Bankruptcy Order will generally be discharged from bankruptcy within 12 months.
A person can declare themselves bankrupt, on a Debtors petition, or be made bankrupt on a Creditors Petition. To make oneself bankrupt will cost £510 for the Official Receivers Deposit and court fee. A petition will need to be completed and a statement of affairs. These need to be handed in triplicate to the court staff. It may be necessary to book an appointment to make yourself bankrupt at some courts. At others you merely need to attend with the correct paperwork.
There are alternatives to bankruptcy which must be considered such as an IVA and debt management, but if bankruptcy is the option taken to eliminate debt, there will be post bankruptcy restrictions.
You will not be able to act as a company director for the time that you are bankrupt, or take part in local or national government. It will restrict practising as a solicitor.
When you are a bankrupt your affairs and assets are taken over by the Official Receiver. If you have a house, it will vest in the OR. If you wish you can have it transferred back to you for the OR’s fees plus £1 if there is no equity or for the value of equity of there is some. You must make sure that you can continue to pay the mortgage.
If you have a car the OR will allow you to keep this if it is necessary for your job or to attend job interviews. If there is more than £2,000 of realisable value in the vehicle he may ask you to deliver the vehicle up to him and he will provide you with £2,000 to purchase a new car.
If when you complete the statement of affairs it shows a surplus of income over expenditure, you may be asked to enter an income payments agreement, which will oblige you to make fixed payments for 36 months.
It is important to take independent advice if you are considering bankruptcy, as help may be available.
About the Author
Contact Steve Thatcher of Help With Debt (UK) Limited and total debt solutions company.http://www.helpwithdebtuk.com/page007.html
For all further reading see http://www.helpwithdebtuk.com
For personal contact email sthatcher@helpwithdebtuk.com
If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406
Visit http://www.helpwithdebtuk.com
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Looking forward while looking back: using debtors’ post-petition financial changes to find bankruptcy abuse after BAPCPA.: An article from: William and Mary Law Review $9.95 This digital document is an article from William and Mary Law Review, published by Thomson Gale on October 1, 2007. The length of the article is 16408 words. The page length shown above is based on a typical 300-word page. The article is delivered in HTML format and is available in your Amazon.com Digital Locker immediately after purchase. You can view it with any web browser.Citation DetailsTitle… |
