Are you facing serious debt problems and considering the possibility of bankruptcy in Birmingham?
Bankruptcy is a way of clearing debts that may otherwise take years to pay back. It is one of the quickest ways to gain a fresh start financially. However, it’s not a decision to be taken lightly as it can have serious implications for your future.
At Irwin & Company, we’ve been helping people deal with bankruptcy for years. Our dedicated team of specialist insolvency practitioners in Birmingham provides advice and assistance on whether bankruptcy is the best solution for you, and can guide you through the process in a sensitive, empathetic manner.
Contact Irwin & Company today on 0121 623 7106 to discuss your bankruptcy case.
What Is Bankruptcy?
Bankruptcy is a legal procedure that releases a person from their debts. You can declare yourself bankrupt or a creditor can apply to court to bankrupt you, even if you don’t want them to. For this to happen, you must owe them a minimum of £5,000.
While bankruptcy writes off most of your debts giving you a clean financial slate, it’s a big step that impacts many areas of your life. Therefore it’s essential to have a full understanding of the process.
How Does Bankruptcy Work?
If you wish to declare yourself bankrupt, you must complete an online form and pay a fee of £680; you must pay the fee in full before your application will be considered.
An adjudicator at the Insolvency Service in Birmingham will consider your application and make a decision within 28 days. If your application is accepted, a bankruptcy order will be issued.
A creditor can make you bankrupt if you owe them £5,000 or more, and you haven’t been able to agree repayment of the debt. Before presenting a bankruptcy petition, the creditor must issue a statutory demand. If you cannot meet this demand within 21 days, they can apply for a bankruptcy order via court.
During bankruptcy, valuable, non-essential assets, such as property and possessions, may be sold off and used to pay your creditors, along with any excess income. At the end of the bankruptcy period – usually a year – the remainder of your debts will be discharged.
Advantages of Bankruptcy
There are advantages to bankruptcy, including:
- It relieves you from stress and anxiety, and allows you to make a fresh start.
- If you have no assets, your debts can usually be written off.
- You’ll be cleared of most debts, although there are exceptions including personal injuries, family liabilities, liabilities under criminal law, student loans, and some benefits.
- You can keep certain items, such as household essentials and a reasonable amount to live on.
- You can be discharged from bankruptcy in less than a year, although in some cases you may have to make payments for up to three years.
- Most creditors cannot take further action against you.
Disadvantages of Bankruptcy
However, it’s important to understand the disadvantages to bankruptcy before you file an application. These include:
- Your bankruptcy will be publically advertised.
- Bankruptcy remains on your credit history for six years, making it difficult to access credit.
- If your income is high, you could be asked to make monthly payments for three years.
- You could lose valuable assets, such as your home, if a partner cannot buy your share.
- You may have to sell certain possessions, such as your car and any luxury items.
- If you run a business, it could be closed down and your staff fired.
- If you’re in employment, you can’t continue in certain jobs such as councillor, company director or MP.
- If you rent a property, your landlord will be informed and may terminate the lease depending on your contract.
- Some debts, such as child maintenance, court fines and student loans will remain.
- If you have joint debts, the other person can still be pursued.
Why Choose Irwin to Deal with Your Bankruptcy in Birmingham?
At Irwin & Company, our knowledgeable team of licensed insolvency practitioners has many years’ experience in dealing with bankruptcy. Our empathetic, non-judgemental team will deal with your situation on a case-by-case basis to help you achieve the best possible outcome.
To discuss a bankruptcy case, contact Irwin & Company today on 0121 623 7106.
Get in Touch
With over 25 years of experience, helping people just like you, we are committed to providing you with all the help and advice you need during these challenging times. Simply give us a call, drop us an email or fill in the form to find out how we can help you.
Irwin & Company,
West Midlands B72 1TU
0800 009 3173
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