One thing nobody wants to experience in their lifetime is having to go bankrupt. It is vital to understand what steps you need to take when your financial circumstances change and you do not know what you can do to remedy the situation. If this sounds like you then please continue reading this article for some useful advice.
The laws regarding bankruptcy are forever changing so it is important that you employ a qualified insolvency practitioner who can walk you through the process and inform you of your rights and obligations throughout the process. They will usually offer a no obligation, free of charge initial consultation. Use this time to gain as much knowledge and understanding about the processes involved as possible.
When discussing your case with your chosen insolvency practitioner make sure that they get down all the details of your case and remind them if they have forgotten anything. Dont be afraid to mention anything to your insolvency practitioner they work for you and it is your future they are dealing with.
When you declare yourself bankrupt it is essential that you declare all of your assets and liabilities and do not try to conceal anything. When meeting with your insolvency adviser be fully prepared for this meeting by taking all financial documentation such as mortgage documents, finance agreements, bank and credit card statements, tax records and details of your household income. By providing as much documentation as possible at the beginning of your bankruptcy petition you will ensure that you submit a comprehensive filing.
Do not be tempted to run up your credit cards just before filing for bankruptcy. as tempting as this maybe, many people have tried purchasing high value items such as watches, furniture or electrical goods thinking the debt will be written off once they file for bankruptcy. However they end up being responsible for paying back this debt as it is obvious what they were attempting to do.
Your initial consultation with an insolvency adviser or practitioner should be free of charge, so consult with a few different ones before making your decision on which one to use. Make good use of this free time to ask as many questions as possible to educate yourself about the bankruptcy process.
It may be tempting to hide certain assets before filing for bankruptcy, but do not do it! If you get caught you could face charges for fraud and deception with the penalties being large fines and or jail as well as having the assets disposed of. Remember it is not worth it!!
When the only option left open to you is to file for bankruptcy, you should now have a better understanding of the process and what to do. Your understanding of the process will become better the more you learn. The information provided in this article is a good starting place for this learning process to begin so that you can tackle your financial situation with a much clearer mindset.