Bankruptcy is no laughing matter, and when the time comes for you to declare it, you probably want things to go as smoothly as possible, as the last thing you want to do is to add onto any stress you’re currently feeling. Though a daunting process, declaring bankruptcy is actually quite simple, and can be done without too many issues, saving you from any additional headaches you’re already probably facing.
Get an Understanding of Your Current Situation
In order to declare bankruptcy, one of the first steps that you need to take, is to collect information on your current financial situation. This means that you need to collect information on all of your debts and assets, and your list needs to be thorough. Your list can vary, and won’t be the same as another person who is also claiming bankruptcy, so it is important you are make sure you don’t miss anything.
Taking this step will allow for you to do things properly, but more importantly, it will show the authorities that you are serious about what is taking place.
Get the Right Forms
More often than not you can often source the forms from your local courts. You’ll need forms such as the ‘Debtors Bankruptcy Petition’ and the ‘Statement of Affairs’. On these forms you’ll need to explain your reasons for going bankrupt, in addition to listing all of your assets, and any debts you may have. This can be done without too many issues, as you should already have an understanding based on your earlier prep work, though if you need help, you can use a specialist local firms’ assistance. It’s important that you do find someone local, as they will understand how your system works, and so if you live in Cheadle, you’ll be need to find firms that provide bankruptcy help in Cheadle.
Prepare for the Fees
When going bankrupt you will need to pay some fees. Though this might sound ironic, it is a reality you will have to face. There will be the cost of having to manage your bankruptcy, but also the costs of having to cover the fees of the court. More often than not, people are able to find the money to deal with these fees, though if you find yourself struggling, you can consider getting the help of some charities to help you get the ball rolling.
Acceptance and Moving On
Once the bankruptcy has been declared, and everything has been accepted by the courts as legitimate, the next step is to look ahead. For most people, any unsecured debts that they might have are often frozen for a set period of time, and may be written off after a certain period of time. Though this might not be the case if you are able to afford them in the near future.
It’s important that once you have declared bankruptcy, you do all that you can to ensure it doesn’t happen again. A traumatic experience, bankruptcy can continue its impact, affecting your ability to gain credit in the future. Do whatever you can to get a better understanding on money management, but also the problems that led you to this situation in the first place.
Though a solution for many when faced with a dire situation, bankruptcy can be a complex process, and though not always difficult to declare, it is important that individuals understand the repercussions before giving the go ahead of bankruptcy. However by seeing it as an option, you provide yourself with a chance to start over, if things get messy.