Bankruptcy is a mysterious process, and many people don’t understand it and how complicated it can be. In layman’s terms, this article looks at the process, who is involved and the implications for the person declared bankrupt and how to find a good solicitor to help you in the process.

Bankruptcy may be difficult and traumatic as well as a purely legal process for many people. So for those reasons it is Essential to find a solicitors to make sure that the legal aspects of the case are dealt with fairly and that you have representation. If you are declared bankrupt, it is a serious matter and not just a technicality.

A court determines whether or not you are bankrupt. You can make a petition to the court to be declared bankrupt or your creditords can also do this. Because your creditors can effectively file for your bankruptcy, this means that you can be declared bankrupt without your consent. This is a bit intimidating!

An Official Receiver will be appointed by the court once you are declared bankrupt. After interviewing you, the Receiver will decide whether anything can be sold, based on what money and assets you have. If you have any assets, an Insolvency Practitioner or Trustee will be appointed to sell them.

Going forward, the Receiver/Trustee will control all your finances and assets, not you.

If you seem to have any surplus income, the Trustee can apply to the court for an official Income Payments Order. That order remains in place for 3 years, but you can be legally and officially discharged from bankruptcy after only a year.

Remember that a bankruptcy is public news. Details of the bankruptcy will be publishes in papers – local newspapers and sometimes Nationals. Your future finances will be affected (such as mortgages etc) as your ‘Financial Associates’ will all be told about your bankruptcy.

finding the best solicitor will mean that your voice is heard and that the process is fair to you. It helps you to feel in control of a difficult and traumatic process.