What Is Bankruptcy in the UK?
Bankruptcy in the UK allows the court system to protect people from creditors. The upside is a short-term answer for those who need the financial assistance. The downside is their financial record will have to be explained their whole lives.
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Petitioning
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A bankruptcy petition can be brought before the court by the person or by creditors owed at least 750 GBP. This is about $1,090.
Bankruptcy Costs
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The cost to file for bankruptcy can be about 377 GBP, or about $548. This is generally a combination of three things: the court fee, administering costs and a swearing to the facts fee.
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The Court Decides
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The court generally decides in one of three ways concerning a bankruptcy petition: grant it, dismiss it or seek more information.
Official Receiver
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The Official Receiver generally will act as trustee of whatever the bankrupt person has left financially. This person is commonly a civil servant.
During Bankruptcy
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During bankruptcy, a person commonly lives with severe financial restrictions, including credit limits of 250 GBP, or about $365. Additionally, they also cannot conduct business under another name.
Credit Post Bankruptcy
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Bankruptcy generally stays on a person's record for about six years. After this, if the person is asked about his financial history, the truth must be told.
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