Bankruptcy History The laws of bankruptcy were created to help people who had accumulated a large amount of debt an opportunity to make amends for these debts.
These laws were created to help individuals who were being swarmed with phone calls and letters from collection agencies.
When a person opts to declare bankruptcy, all of their assets that are deemed to be non essential will be liquidated to help satisfy the debts that are owed to their creditors.
After these items have been liquidated the creditors are not allowed to take any actions against an individual who is protected by the bankruptcy act.
The types of actions protected against include garnishment, lawsuits, collections calls or letters, or any other type of demand of payment made to the individual.
Bankruptcy Shortcomings Many people from the UK consider bankruptcy as a way to brush away their debt but they do not take into consideration the serious consequences that are related with bankruptcy.
Individuals who decide to apply bankruptcy in the UK will have the names published in the papers, and a notice will be sent to any outstanding creditors named on the application.
When you are approved for bankruptcy any belongings that you own that are decided to be non essential will be taken and sold to help repay some of your outstanding debts.
The majority of people who are approved for bankruptcy in the UK will have the bankruptcy on their credit record for a period of five years unless you have already declared bankruptcy in the past in which case your time period will be greatly extended to a maximum of fifteen years.
A person who has declared bankruptcy is not allowed to operate a business in the UK and is also unable to have an open bank or credit card account.
Any current businesses or accounts that you have active will be closed upon your declaration of bankruptcy.
A person who has claimed bankruptcy in the UK will also lose any assets they have gained while they are under the duration of their bankruptcy.
Disclosing Bankruptcy Myths When people are considering declaring bankruptcy they will often hear many myths from family and friends that are focused around this hot topic.
Most people assume that when they declare bankruptcy all of their debts will magically vanish but this is not the case.
There are several different types of debt that are not covered by bankruptcy and you will still owe even if you declare bankruptcy.
Some of these debts include child supports, educational loans, and lawsuits in which you have been found guilty and order to pay a specific amount.
Many people believe that people only file for bankruptcy because they are trying to live off the system or that they have an addiction that has put them in financial distress.
In reality the majority of people who file for bankruptcy in the UK are people who have recently experienced a life altering event like the loss of a job, suffering a disability, or even a failing marriage.
These types of problems can results in the accumulation of debt that is impossible to climb out from under in normal circumstances.
Who Should Apply for Bankruptcy Bankruptcy is not a decision to be made lightly when you are living in the UK as the penalties for declaring bankruptcy are quite stiff and humiliating.
A person should only consider applying for bankruptcy as a last resort as they will lose every asset that they own that the courts deemed to be non essential to that person.
The long duration and extensive penalties that come attached to a bankruptcy in the UK are not something to overlook when you are deciding if bankruptcy is the last option available to protect you from further debt.
These laws were created to help individuals who were being swarmed with phone calls and letters from collection agencies.
When a person opts to declare bankruptcy, all of their assets that are deemed to be non essential will be liquidated to help satisfy the debts that are owed to their creditors.
After these items have been liquidated the creditors are not allowed to take any actions against an individual who is protected by the bankruptcy act.
The types of actions protected against include garnishment, lawsuits, collections calls or letters, or any other type of demand of payment made to the individual.
Bankruptcy Shortcomings Many people from the UK consider bankruptcy as a way to brush away their debt but they do not take into consideration the serious consequences that are related with bankruptcy.
Individuals who decide to apply bankruptcy in the UK will have the names published in the papers, and a notice will be sent to any outstanding creditors named on the application.
When you are approved for bankruptcy any belongings that you own that are decided to be non essential will be taken and sold to help repay some of your outstanding debts.
The majority of people who are approved for bankruptcy in the UK will have the bankruptcy on their credit record for a period of five years unless you have already declared bankruptcy in the past in which case your time period will be greatly extended to a maximum of fifteen years.
A person who has declared bankruptcy is not allowed to operate a business in the UK and is also unable to have an open bank or credit card account.
Any current businesses or accounts that you have active will be closed upon your declaration of bankruptcy.
A person who has claimed bankruptcy in the UK will also lose any assets they have gained while they are under the duration of their bankruptcy.
Disclosing Bankruptcy Myths When people are considering declaring bankruptcy they will often hear many myths from family and friends that are focused around this hot topic.
Most people assume that when they declare bankruptcy all of their debts will magically vanish but this is not the case.
There are several different types of debt that are not covered by bankruptcy and you will still owe even if you declare bankruptcy.
Some of these debts include child supports, educational loans, and lawsuits in which you have been found guilty and order to pay a specific amount.
Many people believe that people only file for bankruptcy because they are trying to live off the system or that they have an addiction that has put them in financial distress.
In reality the majority of people who file for bankruptcy in the UK are people who have recently experienced a life altering event like the loss of a job, suffering a disability, or even a failing marriage.
These types of problems can results in the accumulation of debt that is impossible to climb out from under in normal circumstances.
Who Should Apply for Bankruptcy Bankruptcy is not a decision to be made lightly when you are living in the UK as the penalties for declaring bankruptcy are quite stiff and humiliating.
A person should only consider applying for bankruptcy as a last resort as they will lose every asset that they own that the courts deemed to be non essential to that person.
The long duration and extensive penalties that come attached to a bankruptcy in the UK are not something to overlook when you are deciding if bankruptcy is the last option available to protect you from further debt.