Definition of bankruptcy:
Bankruptcy is one method of getting out of debt. It is a court order that transfers
responsibility for dealing with creditors to the Official Receiver, who
also takes control of the debtors money and assets and distributes
them fairly to all their creditors. Once all debts have been paid or
written off or an agreement reached, the individual is able to make a
fresh financial start.
A bankruptcy order is granted by the court when it receives a petition
(application) from either the debtor or one or more of their creditors
if the amount owed is more than 750 in unsecured debt.
Bankruptcy has its advantages and disadvantages although its an
extreme measure and should be considered very carefully. Just because
youre in a lot of debt, it doesnt mean that bankruptcy is your only
option. Youll need to speak to a financial expert wholl advise on the
best course of action for you. Some useful sources of help are the
Citizens Advice Bureau, the government Insolvency Service, the
National Debtline or the Consumer Credit Counselling Service.
Advantages of bankruptcy:
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