Bankruptcy is often seen as the last resort in solving any debt issues, but I do not subscribe to this. In a related article I will take you through the pros and cons of bankruptcy, and the myths of an IVA which is often touted as the debt solution to take. Please read these and it will become apparent that bankruptcy has been and remains a far more utilised debt solution than the IVA.

The consequences of becoming bankrupt may mean you lose your house, it could prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for the period of time that you are bankrupt.  Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be. This year some 80,000 individuals will become bankrupt.

Bankruptcy can be a daunting experience. There are however companies such as mine that specialise in taking customers through the bankruptcy process, even attending court with you if necessary. Faced with a statement of affairs of 35 pages which needs to be completed in triplicate can be an unnerving proposition. Advice from an expert as to whether bankruptcy is the right route, and then someone to fill in the forms and help you file them at court and then attend with you is something to be considered, especially when I can help you keep your house and your income.

How do I know if I need to pursue the bankruptcy option?

The easy way to find out is to call an expert debt advisor.  They will, very quickly, get to understand your current financial position and advise the best way to solve your situation. The conversation is completely confidential, free of charge and without obligation. You should choose someone who is not allied to either a Debt management company or an IVA firm such as me I will give impartial advice not the solution which makes me the most commission.

What is bankruptcy?

Bankruptcy means that all your debts (subject to a very few minor exceptions) are written off on the instant you are made bankrupt. If you have disposable income you may be required to pay this to the Official Receiver for a maximum of three years. However part of what I do is to configure your disposable income to reduce as much as possible the potential of having to make income payments. You will generally be discharged from bankruptcy in a year or less. If you have equity in your property or valuable assets you may have to release these to the Official Receiver. Although in the vast majority of cases I have seen this year, with very little if any equity in property, homes can be transferred from the Official Receiver back to the bankrupt or his or her spouse for his fees, of about £400.

If you have ever considered bankruptcy as a way to get out of a debt problem you can do no better than call me today. Below are the details of the local county court.

Dewsbury County Court

County Court House
Eightlands Road
Dewsbury West Yorkshire
WF13 2PE

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01924 466135

Going bankrupt is something that is hard to imagine happening to you. When bankruptcy does occur though, you have some options that you can try. For these bankruptcy options to work you will need to consider bankruptcy filing. The options will include chapter 11, 13, and 7.

Each of these types of bankruptcy filing allows you a breathing space while you try to sort out your financial mess. The most well used bankruptcy claims are chapters 13 and 7. In these two options you will be able to talk with your lawyer and find the best method for paying off your payments.

In general chapter 7 and chapter 13 bankruptcy claims ensures that you can’t be forced to pay further debts once you have placed a bankruptcy filing. For your creditors to stop contacting you it is essential that you file a bankruptcy claim.

Once the bankruptcy filing has been accomplished your payments will commence. These payments will be made depending on the type of bankruptcy that you have filed for. As both of these bankruptcy filings are very different it is best if you understand what happens when you file bankruptcy claims.

In the chapter 7 bankruptcy filing you agree to liquidate all of your disposable and non-exempt assets. These assets, money, and property are turned over to a court appointed bankruptcy trustee. This individual will start the process of turning your disposable assets into cash. Once the amount of money that you owe has been found, the trustee will distribute them amongst your creditors.

You should make sure that when you are preparing for bankruptcy filing that you have given your lawyer a list of all of your creditors so that the proper payments can be finalized.

This step in bankruptcy filing will wipeout all of your debts, excepting for certain non-dischargeable debts. You will however need to discuss with your lawyer the best ways to go about bankruptcy filing for chapter 7 and in some cases chapter 13.

The chapter 13 bankruptcy filing will allow you to make arrangements with your lawyer to pay off these payments as best as you can. The lawyer will examine your bankruptcy case history before you can begin the bankruptcy filing process. Once the filing has been finalized you have a period of 5 years to pay off your debt.

Bankruptcy filing is the best way to make sure that your bankruptcy claim is following in the proper path. Your lawyer should be able to advise you on the best route of bankruptcy to file for.

When going through bankruptcy, the most common question that occurs in people’s minds is whether they can keep their homes during and after the situation. This happens as people are petrified of losing their possessions once they are declared bankrupt. Within Chapter 13 of bankruptcy, individuals need to follow a regimented prepayment plan for a few years until their debts are wiped clean. During this period they do not have to surrender their homes and possessions. This can be done until and only when any creditor does not have any liability on their property and possessions. For instance, those entitles to a mortgage loan may need to consistently make periodic paybacks without having to go through foreclosure. Filing for Chapter 13 in bankruptcy will help applicants catch up on these balance paybacks.

Chapter 7 on the other hand will help individuals wipe out their slates from any past obligations by liquidating their nonexempt assets and possessions. It is essential that individuals find the means to take care of unpaid expenses and expenditures. Liquidating a few valuable items may be the ideal option to take care of these expenses. Applicants should note that most of their possessions such as vehicles and homes are exempt from being claimed by financing institutions. The federal bankruptcy code itself includes exemptions from $500 up to $10,000. 

All retirement funds and pension plans are protected by this code up to $1 Million. Hence, it is preferential to declare bankruptcy rather than liquidating certain assets to make outstanding payments. Applying for Chapter 7 bankruptcy will render creditors unable to get hold of the applicant’s assets and possessions which could occur due to an unsecured debt that may occur from a credit card discharge.

In the long run, either for better or worse, many individuals who have made the decision of opting for bankruptcy, do not have many valuable possessions and assets hanging around. The most vital asset that they possess is their home and thankfully enough this is covered by a code of homestead protection. Majority of the states have a certain level of homestead protection that enables to avoid the creditor’s hands from claiming a bankrupt individual’s home equity.

Chapter 13 bankruptcy is often referred to as ‘reorganization bankruptcy’. Unlike chapter 7 bankruptcy which requires debtors to sell assets to pay outstanding debts, Chapter 13 lets petitioners keep assets as long as they adhere to a court approved repayment plan.

Chapter 13 bankruptcy extends payment terms with creditors and allows debtors to repay debts over a period of three to five years. Debtors are required to submit chapter 13 payments to a bankruptcy Trustee who distributes monthly payments to creditors.

If debtors are unable to abide by reorganized debt payments, creditors can petition the court and request the bankruptcy petition be dismissed. When debtors fail out of bankruptcy, the judge can either allow them to file Chapter 7 or dismiss the petition.

If Chapter 13 petitions are dismissed, debtors lose protection from the court and creditors can initiate collection actions, including foreclosure. This can be particularly harmful to debtors who file bankruptcy to stop foreclosure.

Once debtors fail out of bankruptcy, lenders commence with foreclosure proceedings at the point where they left off prior to the debtor filing for chapter 13. In many cases, foreclosure can commence within a matter of days.

Debtors can file for personal bankruptcy without legal assistance, but this is not advised. New bankruptcy laws established in 2005 require debtors to follow specific protocol outlined in the Bankruptcy Abuse Prevention and Consumer Protection Act. BAPCPA is exceptionally complicated and few people can adhere to the policies without assistance from bankruptcy attorneys.

When possible it is best to consult with three or more lawyers prior to filing Chapter 13. Organize financial records including pay stubs, bank statements, investment statements, alimony, child support, and expenses prior to meeting with attorneys.

Bankruptcy lawyers prepare and present petitions to the court. Shortly thereafter, a 341 creditors meeting is scheduled. Debtors are given the opportunity to explain their circumstances to creditors and present their proposed repayment plan during the 341 meeting. Creditors who want to be included in the repayment plan must submit claims within ninety days of the meeting.

BAPCPA requires all debtors to repay a portion of their debts when possible. The amount to be repaid under chapter 13 is determined by the means test; a financial tool that compares debtors income to their states’ median income level.

Individuals who earn equal to or greater than median income levels are required to file chapter 13 bankruptcy. Individuals who earn less might be eligible for chapter 7.

It is important for debtors to realize a large percentage of disposable income must be contributed toward repayment of debt. Additionally, debtors cannot incur new debt during the repayment period unless approved by the bankruptcy Trustee.

Before deciding to file for chapter 13 bankruptcy it is strongly recommended to conduct research via the Internet or by consulting with a bankruptcy attorney. Bankruptcy has far-reaching effects that can haunt debtors for ten years and cause serious harm to their credit. Consider bankruptcy alternatives such as debt consolidation, debt settlement, credit counseling and budgeting before petitioning the court for debt relief.

Bankruptcy is often seen as the last resort in solving any debt issues, but I do not subscribe to this. In a related article I will take you through the pros and cons of bankruptcy, and the myths of an IVA which is often touted as the debt solution to take. Please read these and it will become apparent that bankruptcy has been and remains a far more utilised debt solution than the IVA.

The consequences of becoming bankrupt may mean you lose your house, it could prevent you from pursuing certain careers and, for example, prevent you from becoming a company director for the period of time that you are bankrupt.  Having said that, the severity and stigma of bankruptcy has lessened over time and it is now far more acceptable than it used to be. This year some 80,000 individuals will become bankrupt.

Bankruptcy can be a daunting experience. There are however companies such as mine that specialise in taking customers through the bankruptcy process, even attending court with you if necessary. Faced with a statement of affairs of 35 pages which needs to be completed in triplicate can be an unnerving proposition. Advice from an expert as to whether bankruptcy is the right route, and then someone to fill in the forms and help you file them at court and then attend with you is something to be considered, especially when I can help you keep your house and your income.

How do I know if I need to pursue the bankruptcy option?

The easy way to find out is to call an expert debt advisor.  They will, very quickly, get to understand your current financial position and advise the best way to solve your situation. The conversation is completely confidential, free of charge and without obligation. You should choose someone who is not allied to either a Debt management company or an IVA firm such as me I will give impartial advice not the solution which makes me the most commission.

What is bankruptcy?

Bankruptcy means that all your debts (subject to a very few minor exceptions) are written off on the instant you are made bankrupt. If you have disposable income you may be required to pay this to the Official Receiver for a maximum of three years. However part of what I do is to configure your disposable income to reduce as much as possible the potential of having to make income payments. You will generally be discharged from bankruptcy in a year or less. If you have equity in your property or valuable assets you may have to release these to the Official Receiver. Although in the vast majority of cases I have seen this year, with very little if any equity in property, homes can be transferred from the Official Receiver back to the bankrupt or his or her spouse for his fees, of about £400.

If you have ever considered bankruptcy as a way to get out of a debt problem you can do no better than call me today. Below are the details of the local county court.

Doncaster County Court

74 Waterdale
Doncaster South Yorkshire
DN1 3BT

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01302 381730