Declaring Bankruptcy

Deciding to go bankrupt can be quite a bold decision for any individual who is not able to bear the burden of rising debt anymore. However, in certain situations, declaring oneself bankrupt can be one of the safest decisions that one can take. The process of declaring bankruptcy is strictly defined, although bankruptcy should only be considered as a last resort solution to debt problems.
 
There is a set of criteria which has been laid down by the government in order to define the set category of people who can qualify to declare them selves bankrupt. The person, necessarily, should be a resident of UK and should possess a UK passport. Other requirements include that the person should have already paid majority of his debt and can afford the fees to go bankrupt i.e. £495 pounds which the individual may be required to pay at the time of filing for the petition.
 
Declaring bankruptcy may seem like a very complex process but it can be greatly simplified if the debtor follows some simple steps. The first step towards declaring bankruptcy is to identify the local county court and obtain its contact details. An individual needs to submit their application document for bankruptcy or petition in person. It is very important to ensure that the bankruptcy petition is filed in the correct county court which can be decided on the basis of one’s home address. For filing of bankruptcy with the local county court, an individual needs to have two necessary documents with them i.e. Bankruptcy Petition and Statement of Affairs.
 
Declaring bankruptcy can prove to be a very lengthy procedure. Thus an individual may require reporting to the county court at the earliest, preferably by morning so that all the legal proceedings can be wound up within a day. Before declaring a person as bankrupt, the authorities at the court may choose to assess that the person is actually insolvent and thus, fit to be declared as bankrupt. If the district court Judge is satisfied with the petition filed by an individual, he can be declared bankrupt at the very same day, thus relieving him of all the tensions of repaying the hefty amount of debt when he is no longer left with any financial resources.