Bankruptcy: A Concise Guide
By Benedict Rohan
Definition of bankruptcy:

Bankruptcy is one method
of getting out of debt. It is a court order that transfers
responsibility for dealing with creditors to the Official Receiver, who
also takes control of the debtor’s money and assets and distributes
them fairly to all their creditors. Once all debts have been paid or
written off or an agreement reached, the individual is able to make a
fresh financial start.

A order is granted by the court when it receives a petition
(application) from either the debtor
or one or more of their creditors if the amount owed is more than
£750 in unsecured debt.

Bankruptcy has its advantages and disadvantages although it’s an
extreme measure and should be considered very carefully. Just because
you’re in a lot of debt, it doesn’t mean that is your only
option. You’ll need to speak to a financial expert who’ll advise on the
best course of action for you. Some useful sources of help are the
Citizen’s Advice Bureau, the government Insolvency Service, the
National Debtline or the Consumer Credit Counselling Service.

Advantages of bankruptcy:

a formal, legally binding arrangement called an
Individual Voluntary Arrangement may be able to be set up with your
creditor. You’ll need the services of an insolvency practitioner to
arrange this.

Alternatively, insolvency practitioners also offer href="http://www.mortgagenation.co.uk">debt management plans, in
which they take on management of your debts for a fee.

If one or more creditors has obtained a county court judgement against
you and the total owed is less than £5,000, you may be able to
apply for an administration order at your local court, under which your
repayments to your creditor are made via the court, which takes a
portion of the repayment for administering the repayments.

Biography:
Author: Benedict Rohan
Website: www.mortgagenation.co.uk
Benedict Rohan works as a freelance finance writer. Commercial Mortgage, Homeowner Loans, Remortgages