A huge debit amount that is impossible for a person to pay back makes him or her trapped in a threatening financial condition on the verge of collapse
. In such a situation, a bankruptcy or IVA seems a viable option. Most of the people favor IVA in comparison to declaring bankruptcy. This is because, in case of bankruptcy all the non essential assets are taken away by the government to pay the creditors, this includes the house as well. The applicants for IVA can retain his or her home.
The payable amount is on the higher side for IVA in comparison to bankruptcy and IVA option can be obtained only if a person has certain regular income. It is best to have a sound debts advice before deciding on the future course of action. If bankruptcy is the most suitable option for a person then, professional bankruptcy help should be used to sail smoothly through the process of obtaining one.
To start the bankruptcy process a person has to fill up the form 6.27 and statement of affairs. Once the forms are thoroughly read, understood and filled properly; those must be submitted at the local court. Along the submission of forms a payment of 495 Pounds is to be made to the court. 150 Pounds is the court fee and 345 Pounds is for the administration costs. 7 Pounds for the swearing of the statement of affairs is charged if the applicant goes to the high court. Next the applicant has to meet the Official Receiver to discuss about his or her assets and farther proceedings. Sometimes the applicant has to go to court to see the judge, though it is not always necessary. After all the checks and required proceedings of the government, the applicant is declared bankrupt.
To go through the entire process of declaring bankruptcy without a hitch the applicant requires professional bankruptcy help from a qualified consultant. To properly go through bankruptcy application processes for the first time is a tough job. A consultant earns his or her bread and butter from helping to obtain bankruptcy status. The experience and knowledge of the financial consultant guides an applicant through the numerous steps of obtaining bankruptcy status.