Bankruptcy has to be considered an option when you can no longer pay debts as they become due. This can happen for a number of reasons such as losing your job or taking on too much debt. Whilst banks and other financial organisations must take some blame for the amount of debt that some people find themselves in it should be mentioned; you are ultimately responsible for any debts and must make sure you are in a position to pay them back.
If you find that due to a change in circumstance you can no longer pay your outstanding debts there are several things you must consider before becoming bankrupt.
Contact the financial organisation that you owe money to as soon as you start experiencing problems, they may be able to help. This is very important if you have a mortgage as falling behind with these payments can lead to your home being repossessed. If you contact your mortgage provider immediately they may be able to help, they will be much less likely to help if you are more than two months in arrears.
If you have contacted all financial institutions and you are still having difficultly you should consider obtaining professional help. Choose who helps you very carefully as some organisations operate for profit so will try and make money from you, which to be perfectly honest is unfair. The two worth mentioning are Consumer Credit Counselling Service which is a registered charity and the Citizens Advice Bureau.
Making yourself bankrupt
Only after speaking to these organisations should you consider seeing someone in relation to going bankrupt. Before making yourself bankrupt you must seek legal advice as it is a major decision. If you seek this advice and decide to go through with it Go to the court within whose jurisdiction you live, obtain the forms and find out how much the fee will be. Fill out the forms and return to court with the fee payable. It is worth mentioning that the fee is around £250 and the legal advice will also cost money. Remember it is easy to check if someone is bankrupt so people will be able to find this information about you and your name will be in the local newspaper to alert your creditors.
Creditors
If someone owes you money who has declared bankruptcy it is very difficult to get that money back, you must speak to the court dealing with it as you are now a creditor.
How do I make someone else bankrupt?
Answer Instruct a solicitor, but be aware that this is likely to cost you £1500.
If you need to
find out if someone is bankrupt then there are several online companies that can conduct a
bankruptcy search on your behalf.
