Every day brings a new headline spelling out the bleak state of the economy and as jobs are lost and credit becomes harder to come by it is unsurprising that a growing number of people are requiring the services of a bankruptcy solicitor. If you find yourself particularly struggling it is important to contact a bankruptcy solicitor at the earliest possible stage; acting quickly enough could even mean avoiding bankruptcy altogether.
What will a bankruptcy solicitor do
Your bankruptcy solicitor can frequently find an alternative solution to your debt problems but sometimes bankruptcy provides the best solution and the fresh start that many people need.
Your bankruptcy solicitor can assist you file the necessary petition to court which will in turn issue a bankruptcy order. Once your bankruptcy soilcitor has helped obtain this, your non-essential assets and excess income will be used to clear the debts. You may also need to consult a bankruptcy solicitor if a debtor goes direct to court to petition for your bankruptcy.
The alternatives offered by a bankruptcy solicitor
A bankruptcy solicitor can do more than simply arrange the details of your bankruptcy petition. If you are struggling with debt, your bankruptcy solicitor can advise you on alternative procedures available to you including negotiating with your creditors and arranging an Individual Voluntary Agreement or Debt Relief Order.
The first option available to your bankruptcy solicitor is to help you come to an informal agreement with your creditors. In this case your bankruptcy solicitor can help you negotiaite a repayment schedule. Your bankruptcy solicitor can even help arrange this before a debtor's petition is due to be heard in court.
Your bankruptcy solicitor can also help arrange an Individual Voluntary Agreement (IVA) which serves as a more formal agreement with creditors. The contract arranged by your bankruptcy solicitor will set out monthly payments taking into account what you can afford to pay over a fixed period - say, of a few years. Once that period is completed the remaining debt is legally written off. However, bankruptcy solicitors predict that lost jobs and repossessions will make such regular payments unfeasible for a growing number of people, leading to a fall in popularity of IVAs.
The final option available to your bankruptcy solicitor is the new Debt Relief Order (DRO). Your bankruptcy solicitor can help arrange a DRO for you if you have debts amounting to less than £15,000 and few assets and little income to pay them with. These are cheaper and easier for your bankruptcy solicitor to take out so are expected to become increasingly favoured over bankruptcy orders.
If you need to consult a bankruptcy solicitor then it is important to act quickly but if it is free legal advice that you are seeking then it is more useful to contact an adviceline such as Citizens Advice.
NB: None of this information should be construed as legal advice
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