Bankruptcy is misunderstood by many, who don’t realise how complicated and difficult it can actually 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 aid you in the process.

There is not just the legal process of bankruptcy to consider but alo the difficult and traumatic aspects. 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. Being declared bankrupt is serious, and not just a technicality.

A court decides whether or not you are bankrupt. You petition a court to be declared bankrupt – or your creditors can do it. You can actually be declared bankrupt without your consent, if your creditors file for your bankruptcy. It’s a scary thought!

Once you’re declared bankrupt, an Official Receiver is appointed by the court. You’ll be interviewed by the Receiver to see how much money and assets you have, and whether anything can be sold to bring in funds. Your assets will be sold by a Trustee or Insolvency Practitioner who will be appointed.

It is important to note that you no longer have control over your finances or indeed your assets- this control is with the receiver/Trustee, not with you.

An official Income Payments Order can be applied for by the Trustee if you seem to have surplus income. This order will remain in place for a 3 year period, although you might be discharged legally after one year.

Always bear in mind that bankruptcy is a matter of public news. bankruptcy details are published in both local newspapers and sometimes national ones too. ‘Financial Associates’ such as gas, water suppliers etc will be told, and your ability to control your finances and get a mortgage will be impacted.

finding the best solicitor will mean that your voice is heard and that the process is fair to you. It also helps you to at least feel you have a little control over what can be a very difficult and challenging experience.