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If no other debt management solution is appropriate and there is no prospect of the person dealing with their debts or being able to fund a settlement, then it will be necessary to consider the option of bankruptcy. This can sometimes be the best way to remove the stress of dealing with long-term debt in return for giving up certain assets and potentially a share of future income.
Bankruptcy is a Court controlled process and can either be started by a creditor or by the insolvent person themselves. The benefit of starting it yourself is that the relief from debt is virtually immediate but the downside is that there are significant fees to be paid to gain that protection.
When the bankruptcy order is made, the Official Receiver will automatically be appointed to take control and later an insolvency practitioner may be appointed as the Trustee in Bankruptcy to deal with the assets. The Trustee will be looking to realise funds from not only the current assets but also potentially from challenging past asset transactions or from future assets or income.
It is important to understand all the implications of a bankruptcy before an assessment can be made of the suitability of other options and we have the experience and knowledge to assist with that assessment.