There are steps to declaring bankruptcy UK which you need to be aware of. This isn't a decision which should be taken lightly and you need to understand all the options available to you before making any final decisions.
Do some research into this financial solution to decide whether it is the right choice for you and your family. Bankruptcy offers a host of advantages and disadvantages and it's essential you fully understand the ramifications this solution poses before making any decisions regarding how to proceed.
Sit down and work out your monthly income, whether it's individual or combined. This is the amount you bring into the home each month. This enables you to see exactly what cash you should have in the bank after each pay day.
Next sit down and work out your monthly expenditure. This is bills that need to be paid each month to avoid penalty fines. This can be anything from mortgage payments to credit card and store card payments. Ensure you include living expenses such as food and petrol into your expenditure. Even though these bills need to be paid, you have to be able to live.
With your income and expenditure in front of you, you can work out if you can actually afford to repay your debts. This is such an important step to making a final decision. In some cases, cutting back on luxuries and planning your budget carefully can free up some cash, in some cases this just isn't enough, which means you need to take the relevant steps to reduce your debt and start fresh.
If you feel that you have no choice but find some financial advice, then ensure you choose a reputable financial company with years of experience that can give you the help and support you need, ensuring any decisions you make are the best for you and your family.
There are a number of steps to declaring bankruptcy UK, which is why you need to be sure this is the right choice for you. The first step is finding a company to work with that can help you through the process. It can be quite a daunting process, so you want a company that will explain the steps in detail, ensuring you understand exactly what can and will happen and how to proceed moving forward.
Next you will want to meet with the company, showing them your income and expenditure and explaining the situation you are in. They will conduct their own study to ensure you cannot afford to repay your debt before moving forwards, as they need to prove to the courts that you are unable to repay this debt and ensure your claim is approved.
You will need to sign a petition, which is drawn up by the company on your behalf, this along with a statement providing your inability to repay the debt is submitted to the court along with a fee for consideration. You will have to sign an affidavit to this effect, this is an important step which helps the court decide if you are able to repay the debt or whether you can reap the benefits of bankruptcy.
Ensure the company explains what you may lose as a result of the claim. In some cases you can lose your home, your job and any other large assets, which are used to repay the amounts you owe. Be aware of the possible ramifications of this decision.
Declaring bankruptcy UK stays with you for a year, after which your debts are written off and you start a fresh life where you can start to enjoy your life without the burden of debt hanging over your head.