Bankruptcy Questions

Filing for bankruptcy is among the most important and difficult thing that a person does in his or her life and it is not easy to decide whether he or she should do it or not. Sometimes families and individuals are left with no other option than filing for bankruptcy to write off their debts, when they have already failed at other debt management methods like remortgage, debt consolidation and refinancing. If you are no longer able to pay off your car instalments and other bills and credit card payments and you have decided to file bankruptcy, then you must understand all the aspects of bankruptcy. Some of the most commonly asked bankruptcy questions are:

• Can bankruptcy be filed by the person himself?  Although it can be filed by an individual, it should not be done without seeking professional advice to ensure paperwork is completed correctly and the process is completely understood.
• Is there any need to sell out the house and other properties while filing for bankruptcy? Except in certain circumstances, any significant property you own will be seized by the Official Receiver for sale by auction. This sale depends partly on ownership status, and can be deferred for up to 12 months to enable a third party to purchase the bankrupt’s interest in the property.
• Will the spouse of the person get affected by the bankruptcy? Bankruptcy is an individual status, so the spouse will not be directly affected. Where the bankrupt’s debts were shared with their spouse (so-called Joint and Several finance), they will become liable for the whole amount due. Additionally, if the spouse has an interest in any property, they will be given the opportunity to buy the bankrupt’s share as well.
• Where can one file bankruptcy? In your local bankruptcy court.
• What happens when one files bankruptcy? Just when you file for bankruptcy, the court sends out notifications to the creditors about the pending case of bankruptcy. From now on, the creditors are not permitted to contact you requesting for their payment.

After finding the answer to these bankruptcy questions, you will be able to decide whether you should file for bankruptcy or not and how to do that if you decide to.