The Bankruptcy Blog
Bankruptcy is usually considered the worst case scenario when you are faced with overwhelming debt problems. It is therefore very important that you have taken proper advice on bankruptcy and your other options as stated earlier.
Debt and bankruptcy is still a multi-million pound ‘industry' that exploits the misfortune of people in debt. And your bankruptcy will stay on your credit report for six years, meaning you may find it difficult to obtain credit during this time. Your assets will normally be sold to help repay your lenders.
Once a bankruptcy order has been made, the Official Receiver will give written notice of the order to a number of organisations. If you are declared bankrupt, you are no longer liable for any outstanding debts documented in the bankruptcy proceedings. The court costs are currently £180 and administration costs are £525 (total £705).
In cases where it is decided by an Official Receiver that a bankruptcy has been brought about through the person's own irresponsible or imprudent conduct, the Official Receiver is able to apply for a Bankruptcy Restriction Order, which can be applicable for between 2 and 15 years, in addition to the normal length of discharge. An important feature applicable to all types of bankruptcy filings is the automatic stay. Chapter 7 and Chapter 13 are the efficient bankruptcy chapters often used by most individuals.
If you are an individual or a sole proprietor, you are allowed to file for a Chapter 13 bankruptcy to repay all or part of your debts. Generally, when a debtor files a voluntary petition, his or her bankruptcy case commences. Generally, a debtor declares bankruptcy to obtain relief from debt, and this is accomplished either through a discharge of the debt or through a restructuring of the debt.
One example: two states, Maryland and Virginia, which are adjoining states, have different personal exemption amounts that cannot be seized for payment of debts. An external bankruptcy manager will take over the company or the assets of the person, trying to sell as much as possible. In Sweden, bankruptcy (Swedish: konkurs) is a formal process that may involve a company or individual.
Irish bankruptcy law has been the subject of significant comment, from both government sources and the media, as being in need of reform. A Proposal Administrator is almost always a licensed trustee in bankruptcy, although the Superintendent of Bankruptcy may appoint other people to serve as administrators. Even though most proposals call for payments of less than the full amount of the debt owing, in most cases, the creditors will accept the deal, because if they do not, the next alternative may be personal bankruptcy, where the creditors will get even less money.
It's a court procedure required by the debtor which has been in business for more than two years and requires approval by a judge. If that is not possible, the Trustee may lodge an Objection to Discharge, effectively extending the bankruptcy for a further five years.