Bankruptcy is a certain legal and financial state of a person that is declared by the United Kingdom government. The bankruptcy state means that the person is in no condition to repay the debt accumulated by him or her and cannot posses any non essential assets.
The bankruptcy cases are rising in the UK. One of the reasons is certainly the change in UK legislature. The change in the legislature has made it beneficial for a person to announce bankruptcy. Though the rules remain the same for bankruptcy, the time period for bankruptcy state is greatly reduced. A person can be discharged from bankruptcy state in less than a year.
Being a bankrupt means, a person cannot have a bank account, cannot run a business. A house or a car being labeled as a non essential asset will be taken away by the government and sold to repay the debts. Getting a loan or credit card becomes a task next to impossible. The name of the person announced bankrupt will be published in paper and letters will be dispatched to outstanding creditors. During bankruptcy if a person gains assets it will be promptly taken away by the government. Also the bankruptcy state doesn't mean that none of the loans are to be paid back.
In the state of bankruptcy also the person has to pay the student loan, child support and lawsuits. Again the court fees and penalties, alimony and debt to utility suppliers are to be paid.
Still, there are situations when the filing for bankruptcy is the best option. The person announced bankrupt can finally free himself or herself from the accumulated debts. Bankruptcy gives an opportunity to get rid of accumulating debts very fast. This in turn offers a fresh lease of life to the applicant.
The availability of good bankruptcy advice is critical. The Bankruptcy consultants play a critical role in providing bankruptcy information and guiding the applicant for a best suited solution and step by step procedure to obtain the desired solution.
As long as bankruptcy remains, the role of bankruptcy consultant UK will remain highly important.