In debt?
Across the UK, there are thousands of people struggling with debt problems due to unemployment, ill health, retirement, ever-increasing bills. If you add into the equation the current state of the UK housing market, for those wanting to sell to release capital or simply loose the burden of a mortgage– it can start to look bleak. Debt can come suddenly or creep up slowly and then the demands start for unpaid bills, outstanding payments on loans, credit cards, mortgages etc.
Being in debt can be extremely stressful and can lead to impacting on your health, relationships and psychological well-being.
Should I become voluntarily bankrupt?
By using the services of volantarybankruptcy.org.uk (see Solicitor Search Network) you will be able to find solutions to your debt problem. It might be that your solicitor can negotiate with your creditors to amend the terms of your debt repayments. Where this is not an option, then in the UK voluntary bankruptcy will permit you time to get a grip on your debt and can save you from being dragged through a court proceeding by your creditors to reclaim money owed. It will also prevent the situation that many fear of a visit by bailiffs. Your solicitor will explain fully how in the UK voluntary bankruptcy works and the protection this will offer you from your creditors. You will have to spend time together to identify the level of your debt, who your debtors are and then consider the value of your assets eg home, car or other property.
Your bankruptcy solicitor will establish what your wishes are in regard to your home and your ability to pay the mortgage – usually you are allowed to stay in your home for up to one year provided you can repay your mortgage and have family living there, permitting you time to explore your options. If during this time your circumstances improve then you take the property out of the bankruptcy proceedings. Where you cannot afford the mortgage then your mortgage provider may have already started discussions with you and requested that you seek legal advice since your home is at risk.
There will be costs involved in obtaining a voluntary bankruptcy including UK court fees, receiver’s fees and solicitor’s fees for time in court etc. All costs will be fully explained together with the benefits and disadvantages of being voluntary bankrupt.
