Bankruptcy is one way of dealing with debts you cannot pay and should only be considered as a last resort. The bankruptcy proceeding discharges you from most debts, allowing you to make a fresh start.
Your estate (comprising of your assets) will vest in a trustee who has a duty to realise any interest you have and distribute the proceeds among your creditors. You will be allowed to keep essentials for living and tools of your trade.
If there is equity in your property, then this is likely to also be realised. Your bank accounts will be frozen and your credit cards stopped. There are a number of restrictions and obligations whilst you are an undischarged bankrupt, including, being unable to practice certain professions, act as a company director and taking further credit.
Any individual can go bankrupt, including individual members of a partnership. You may petition for your own bankruptcy or one of your creditors, owed more than £5,000, can petition to the Court.
RG Insolvency will provide you with expert advice and practical guidance.
Call us now on 020 3603 7871 to discuss your options.