Our overall economy went bad and lots of people have considered filing for bankruptcy. Right now the worry all of them could have is how much does bankruptcy cost? To anyone in need of going this route I will tell you that each circumstance differs from the others and right now there are different kinds or chapters of bankruptcy. Prepare yourself people, the local bankruptcy lawyer working on your specific case won’t charge a flat fee to cover every aspect of you declaring bankruptcy.

To answer the question: how much does a bankruptcy cost, there are a number of issues that first must be examined:

1. The overall amount of your debt that will end up being filed

2. If you will be filing chapter 7 or chapter 13

3. If your primary debt is an unsecured or secured debt

4. The details and account numbers of all your creditors, lenders and companies who you will list

Subject to your particular circumstance, there are a variety of actions that you will have to follow. In addition, according to which chapter you and the legal professional choose to file as well as your specific issues there are numerous forms you need to file to be able to guarantee all of your financial debt is going to be included in your filing.

Alas, filing for bankruptcy is not free. If ever I ran into anyone boasting they are able to help file for bankruptcy absolutely free; this would raise a red flag for me. Think about it, would you really want a problem as significant as going bankrupt worked on by any person who will do it free of charge? You surely get what you pay for and I for one won’t put my family’s future in the hands of anyone looking to play with my future.

If you’re looking for a reputable company, here’s my #1 recommendation: simply CLICK HERE and fill out the contact form for a free consultation.

I recognize your debt might be unmanageable which could be the reason you want help, however for you to discover exactly how much does a bankruptcy cost it is best to get yourself a totally free consultation. Many legitimate institutions with the actual know-how required to complete the job right will often discuss your problems with you so you can decide which direction to follow. During the free consultation you’ll get a good idea of the expenses of filing and the time necessary to have the bankruptcy acknowledged and completed.

For those of you that believe you’ll have enough knowledge to enter a courtroom and inform the judge you will not be paying your bills from now on; I’ll tell you from personal experience this isn’t the way it’s going to happen. Declaring bankruptcy is just not a hassle-free procedure and failing to get it done perfectly can cause your family a world of difficulty I’m confident that you simply won’t want your family to experience. Each and every individual scenario is going to be reviewed as well as each individual’s amount of financial debt, and personal revenue. The judge will determine whether all of the paperwork is in order and then whether or not to approve the bankruptcy.

The subject of how much does a bankruptcy cost is surely an important one but more important than that that question can be: what chapter do I file and specifically what forms will I have to prepare just before filing. For that reason I would definitely recommend you to get a free consultation and have the answers you will require to file for bankruptcy successfully and properly.

Speak with someone qualified and knowledgeable in filing bankruptcy click here to get all the details for your specific circumstance. Turn into an educated consumer and help rescue your loved ones from the tension and irritation of filing for Bankruptcy.

You don’t have to go it alone, good luck.

If I go bankrupt can I continue to run my business?

For senior business managers or owners, Bankruptcy is not an option if you want to continue managing your business.

Where you have debts which you have no hope of repaying, bankruptcy can be an extremely useful solution, which over 6000 people a month use to solve their debt problems.

For those people who are not a home owner, or do own your home but have little equity in it then you will not lose your property in bankruptcy. You will also be able to retain reasonable household goods and personal possessions. However for those running a business it is not such good news. If you are running a business as a director of a limited company or as a sole trader, you need to be very careful before deciding to go down the bankruptcy route.

The effect of Bankruptcy on company directors

You cannot declare bankruptcy and continue to act as the director of a company or be involved in its management. This means that if you are a company director and want to remain in this position, bankruptcy is not an option for you.

It is also not an option to simply resign as a director and then to keep on running your business as before. Under the terms of your bankruptcy, this activity is not allowed.

As such unless you are able to introduce a new director or can leave the management of your business to other competent individuals, on declaring bankruptcy you would effectively be required to close your business.

The Individual Voluntary Arrangement was introduced into English law to act as an alternative to bankruptcy for company directors and therefore overcome this problem.

The effect of Bankruptcy on sole traders

As a sole trader, you are not a director of a limited company. Therefore under the terms of the law, if you declare bankruptcy you can continue to run your business.

However, the issue that you will face is that once bankrupt, all of your bank accounts including any business accounts will be closed. This will mean that you will lose your business banking facilities such as your overdraft and credit card.

It will be possible for you to open a new personal bank account after you are declared bankrupt. However, this will be a simple account known as a card cash account. You will not normally be given a debit card or an overdraft facility with this type of account.

If you believe that your business will not be able to operate without credit facilities such as an overdraft, then declaring bankruptcy may make continuing to operate your business impossible.

The effect of Bankruptcy on employees

As with a sole trader the law does not stop you declaring bankruptcy and working for a company even in a senior position If your title within the company is known as director, but you are not registered as such at company’s house, then you can still declare bankruptcy.

There are some positions particularly in the finance arena where your contract of employment may may mean that you can be dismissed if you declare bankruptcy. If you believe that this may be the case, it is always sensible to check before declaring bankruptcy.

Bankruptcy is an extremely good way of dealing with a serious debt problem for many people. However, if you are a company director or run a sole trading business , you need to think carefully and take further expert advice before proceeding with this option.

If you declare bankruptcy, this does not automatically mean that you will lose your home especially if you have little or no equity or are renting.

Bankruptcy has significant advantages for someone who is struggling with serious debt. The process generally lasts for just 12 months and you will only have to pay towards your debt if you can afford to do so.

Once you are declared bankrupt, your creditors can no longer harass or chase you for debt so phone calls and letters stop. You will be allowed to keep all of your reasonable household goods such as your TV, stereo, dishwasher and washing machine.

However, for those who are unable to pay their debt, bankruptcy is often considered as last resort because they are worried that they will lose their home.

But for many people their house is not at risk.

Those who rent their property

About 35% of households in the UK rent their property. If you rent and go bankrupt, it is extremely unlikely that you will be asked to leave your property.

As a bankrupt person, you are allowed to maintain control of your expenditure budget including the money to pay in rent. As long as this continues to be affordable and you maintain the payments on time (which you should be able to do if your debts have been taken away from you) then your landlord will not normally have a problem.

There are often clauses in private rental agreements which allow a landlord to ask a tenant to leave the property if they have been declared insolvent or bankrupt.

However, if the tenant is up to date with the rent and can show that this will continue to be paid, most landlords will not wish to upset the apple cart in terms of their rental income by forcing out a tenant.

What happens if you own your home?

If you are a homeowner, the decision about whether to declare bankruptcy or not becomes a little more complicated. Whether or not your house will be at risk very much depends on whether you have any equity in it.

If you have little or no equity in your property, and the house was sold, there would be nothing to gain for your creditors. For this reason the official receiver will not normally want to sell the property if you declare bankruptcy.

However, you must ensure that once you are bankrupt, you immediately buy back the beneficial interest in the property. This means that you regain the title of your house this protecting it from sale at a later date. This process will normally cost about £211.

Homeowners with equity

Generally speaking, homeowners who have equity in their property will want to avoid bankruptcy.

The problem is that the equity is an asset which must be realised for the benefit of the creditors. For this reason, any property you own with equity in it is at risk if you declare bankruptcy.

You cannot escape this situation by simply transferring your house into someone else’s name. Any such transfers which take place within 5 years of you declaring bankruptcy can be overturned by the court.

It is possible for a friend or family member to buy your equity from the court meaning that the equity is simply raised for your creditors without the need for the sale of the house. The property would be then simply returned to you.

The inability to repay personal debt is a serious problem for many people in the UK. The most important first step if you have a debt problem is to get the right advice and consider all of the options available to resolve the problem.

Bankruptcy may sound like a nightmare scenario. However, for very many people it is a very sensible way of dealing with debts and will certainly not result in the loss of their home.

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.

Carlisle Combined Court Centre

Courts of Justice
Earl Street
Carlisle Cumbria
CA1 1DJ

County Court: Switchboard

01228 882140

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.

Chelmsford County Court

Priory Place
New London Road
Chelmsford Essex
CM2 0PP

Switchboard

01245 264670