| The Bankruptcy Process in UK
What do you do when you have already exhausted all the means to keep your finances afloat—but to no avail? The most significant recourse that you can do is to file for a bankruptcy. However, different countries have their own ways of dealing with this financial process. If you’re living in the UK, for example, you have to take note of the following:
Only the court can give the bankruptcy order
There’s no other branch of the government or person who has the authority to consider you bankrupt than the UK court. However, before they can do that. You need to be able to present your own petition as well as that of your creditors. The latter should be those to whom you owe £750 or more.
There are a number of fees that you have to pay before you can consider yourself bankrupt
First, you have to make a deposit of £250 for the administration of your bankruptcy. You also have to pay the charges associated with the swearing of your affidavit to the statement of affairs. You don’t have to shell out some money if you’re just going to deal with the county court. You also have to pay a court fee, which sums up to £120. However, this will be waived or reduced depending on certain circumstances. Have your situation evaluated first to know if you can actually avail of a much lower rate later on.
There are a lot of ways on how you can pay these charges. You can do it through postal order, cash, or check. However, if it’s going to be the latter, make sure that it’s not going to be a personal check.
Moreover, the fees will be collected separately, even if you’re filing as a couple, partners, or incorporators. Nevertheless, those who have filed for joint bankruptcy petition may only have to pay once.
It’s always best to simply cooperate
Even if you don’t agree with the bankruptcy order, it can still be made. If you believe that you’re not really going bankrupt and that the creditors have wrongfully considered you as such, it’s recommended that you talk about it and settle whatever financial obligation you have with them before the bankruptcy order. Otherwise, it will cost you a lot, and the process will be long, before the decision can be reversed.
In the end, though, ensure that you don’t file for bankruptcy as this can definitely affect your credit rating. |
