Im sure many of you have heard this pearl of wisdom before, I know I have. But is it really that simple Is it as straightforward as it sounds whats involved in the Bankruptcy process

Well, as somebody who has actually been through the process I can assure you it is anything but simpleand for many people it definitely isnt straightforward.

So whats involved

An appearance before the judge

Most people who go bankrupt have never actually been to court (although people in debt are often made to feel like criminals) and this in itself can be quite a daunting experience. The court hearing itself isnt too bad, provided you treat the judge with respect & courtesy; hell most likely treat you in the same manner.

Questionnaire

The next step is all the form filling. The main form to complete is the Bankruptcy questionnaire which is a very detailed & lengthy document. This is where you detail all your debts, your assets & your current situation you have to be sure that you enter the correct detail on this form, this will play a major part in your interview with an Insolvency examiner (see below).

The Interview from hell

For those of you who can remember the feelings of fear & trepidation you experienced at job interviews Multiply it by 100 and youre close to how you could feel at this interview

Obviously it all depends on which Insolvency examiner is dealing with your case, you may sail through this stage of the process or it may be one of the worst days of your life

Bankruptcy restriction orders / Income payment orders / Loss of assets

Basically, the Insolvency examiner will be looking for reasons why you should be subjected to a Bankruptcy Restriction order (which can mean that the nasty effects of bankruptcy could last for up to 15 years, rather than 12months) or an Income payments order which would mean that a large % of your surplus income would be paid to the Official receiver for a period of 3 years. The examiner will also be looking for assets that you own that could be taken from you.

So, does it still seem as simple as being debt free in 12months?

As you can see, although it is possible to be debt-free in just 12months, there is also a good chance that youll end up losing your assets or with either a Bankruptcy restriction order or an Income payments order around your neck.

So, avoid Bankruptcy, then?

Not necessarily for many people, Bankruptcy is the right solution and if you undertake the process in the right manner, you will be debt-free in 12months, but you must ensure you do everything right ensure you know how to complete the questionnaire correctly know what to say in court & at the interview and know your rights Dont go it alone You could end up in a worse position than youre in now.

For further information, see http://www.thedebtsurvivor.com/personal-debt-solutions/bankruptcy/

Best wishes

Paul Johnson

Administrative Receivership is a procedure that can only be instigated by a secured creditor with a valid floating charge over the assets of the company. This is usually the companys bank.

The charge must have been created prior to 15 September 2003. With a few exceptions, secured creditors with charges created after 15 September 2003 are no longer able to appoint an Administrative Receiver. Administration is viewed as an alternative action.

An Administrative Receivers role is to achieve the best outcome for the appointing chargeholder.

Examples:

The company is insolvent but there is a strong chance that the business can be sold on and there is a floating charge creditor with the power to appoint an Administrative Receiver.

It appears to the floating charge holder that there is a risk the assets covered by its charge are likely to be diminished by continuing trading.

If you think that your Company can be saved via an Administrative receivership, give me a call on 0800 533 5370 now to discuss it further.

Company Administrationis designed to protect companies from their creditors while a restructuring plan is developed. The type of creditor action that Company administration will stop includes:-

Bailiffs distraining on behalf of rating authorities

Landlords distraint for arrears of rent

Action by Revenue and Customs & Excise to enforce their debt

Following changes to legislation introduced in September 2003, the Company administration procedure is now streamlined which has resulted in reduced costs and better returns to creditors. An Administrator can be appointed by filing documents at court and with a few exceptions, the administration must be concluded within a year.

The purpose of the Company administration must achieve;

1) Business Rescue / Rescue of the company as a going concern or if that is not possible

2) Achieving a better realisation of the companys assets than in a Company liquidation

Only if the neither of the first two purpose are possible, can the administrator use the third purpose:-

3) Realising property in order to make a payment to the companys secured or preferential creditors

If you think that your Company can be saved via Administration, give me a call on 0800 533 5370 now to discuss it further.