Bankruptcy my personal example story with how to do it yourself help, the processes & all the steps involved.

After seeking professional impartial advice (which you should at least do yourself) here in England, UK. I decided to declare myself bankrupt.

If your creditors know you're thinking of becoming bankrupted they might bring court proceedings against you.

On 1 April 2004, the Enterprise Act 2002 changed for bankruptcy:

Reduction of the automatic discharge period from 3 years to 1 year

Introduction of ‘early discharge’, whereby discharge can occur in less than one year

Bankruptcy Advantages:

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Official receiver deals with your creditors.
Once the bankruptcy is over and you have been discharged you have a fresh start.
What can you keep when bankrupt. You are allowed to keep certain assets once declared bankrupt.
Money owed is usually written off.
Pension when bankrupted is usually ok, click link for more details.
Creditors have to halt most court actions after a bankruptcy order has been issued (bailiffs may be able to still take belongings).

Bankruptcy Disadvantages:

Currently the deposit costs £325 & the court fee is £160. If you are receiving certain state benefits fill in another form & the court fee is waived.
Can't apply for credit for more than £500 without permission from the official receiver.
Your personal assets when bankrupted, such as property and bankruptcy including my home and bankruptcy, vehicles & luxury items will probably be sold. Find an authorised insolvency practitioner.
Income will be examined and if it's deemed greater than you need to live on you will be asked to sign an income payments agreement or forced to pay an income payments order.
Certain professions that don't allow bankrupts, even if discharged, to perform them.
During corporate bankruptcy business interests will be closed. The business assets when bankrupted will be sold off.
Bankruptcy can affect your immigration status.
Some debts can never get written off, such as court fines and certain student loans when bankrupted .
A record of your bankruptcy/insolvency will be held online individual insolvency register and may be published in newspapers.
Bankruptcy Restriction Orders and Bankruptcy Restriction Undertakings can constrain a bankrupts financial affairs from 2 years to upto 15 years.

Is Bankruptcy best for you?

Debt settlement or consolidation may suit your situation better alternatives to bankruptcy including:

IVAs Individual Voluntary Arrangement
Consolidation Loans
Informal Arrangements/Family Arrangements
Debt Relief Order

Bankruptcy - First things first

I firstly had to get the debtors bankruptcy petition (form 6.27) and debtors statement of affairs (form 6.28) (form EX160 explains in more detail) either from a local county court or you can click here to go to the insolvency website were you can download the bankrupcty forms and save them to print & complete.

You can now complete this online click here to go to the 'do it online' page at the insolvency service website.

Please note that the Scottish laws governing credit & debt are different to English laws.

Bankruptcy in Scotland: Sequestration

What is Sequestration?

It is the term for Scottish Bankruptcy. The meaning of sequestration: A written order of the court commanding the sheriff or other officer of the court to seize the goods of the person named in the written sequestration order.

You either obtain a sequestration order or whoever you owe money to does the obtaining of the sequestration order against you.

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