If you are an individual who is unable to repay your debts and the other options aren’t suitable to your circumstances, bankruptcy may be an option that you wish to consider.
An individual or sole trader can file for bankruptcy which would free you from your debts and allow you to start again, although some restrictions will apply. In many instances, you can be discharged from bankruptcy within one year.
If you are a home owner and your share of the equity is more than £1,000, this will be realised as well as any other assets you may hold and the trustee will have the power to enforce this. However, all home owners would be made aware of any intended or commenced actions with regards to their property and it is possible for a family member to buy your share in the property. Your home can still be repossessed if you don’t keep up the payments.
Once you are declared bankrupt, the administration would be conducted by either the Official Receiver or a licensed Insolvency Practitioner who will act as trustee of your estate.
Some assets may not be incorporated in the bankruptcy. These include everyday household items, a vehicle of reasonable value to enable you to get to work, tools of the trade and your pension.
Debts that are not taken into consideration include fines, maintenance and child support payments and other family court orders, debts to secured creditors, such as your mortgage company and other debts arising from personal injury, fraud and other criminal proceedings.
Abbey Taylor are qualified professionals who can find the right solution for you.