Essential Bankruptcy Facts

If you can no longer manage your debts then you may be considering bankruptcy – but it’s important to know all the facts before making such a decision.

Becoming bankrupt can have a big impact on your finances in both the short term and long term, so here is a selection of important bankruptcy facts to know about the issue.

• The person who takes control of your assets when a bankruptcy order has been made is known as the Official Receiver. They will be responsible for handling all bank statements and details on insurance policies linked to your finances and property.
• Direct payments to creditors are prohibited.
• A court appearance may be required to explain why you are in debt and to discuss your financial predicament.
• You may lose your home if you own it and some of your possessions could also need to be sold.
• You can be prohibiting from holding certain public offices if you’ve been declared bankrupt.
• You may not conduct business directly or indirectly in any name other than the one in which somebody has been made bankrupt.
• When opening a new bank account or building society account, an individual must declare that they are bankrupt, which could in turn result in particular conditions and limitations being imposed.
• Becoming bankrupt can impact negatively on your credit rating for a minimum of six years with credit reference agencies.
• The Official Receiver can close down your business if you own one and sell off the assets.
• Certain debts, like student loans, will not be written off if you become bankrupt.

If you are struggling financially then it’s vital to act sooner rather than later and seek help from the experts. Bankruptcy advice from payplan.com, for example, could put your mind at ease and result in finding the most appropriate debt solution for you.

What’s more, payplan.com offers free professional help.

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