Facts You Need To Know About Bankruptcy

1
Facts You Need To Know About Bankruptcy
2
What is Bankruptcy?

• A legal proceeding involving a person or business
  that is unable to repay outstanding debts.
• All of the debtors assets are measured and
  evaluated, whereupon the assets are used to repay
  a portion of outstanding debt.

3
How to Become Bankrupt?

• You can become bankrupt within 10-14 days, and
  the first step is getting a bankruptcy trustee.
• As a result, almost all your debts become owed by
  your bankrupt estate, not by you. You are now
  debt free, or almost debt free.

4

• If you want to keep an asset that is allowed
  under the law, such as a car and maybe your
  house, you must continue to pay for it.
• This is called secured debt and I will cover
  them later. For now, were
• most concerned with the most common type of debt
  unsecured debt.

5

• This is the dead-end sort of debt that burdens
  most people and what I come across most of the
  time credit card debt, tax debt, store card
  debt, phone debt, personal loan debt, and the
  like. Does that sound familiar?

6

• When you go bankrupt this sort of debt is simply
  cancelled immediately as far as you are
  concerned.
• You personally dont owe it any more full stop!
  Instead, your bankrupt
• estate owes it, and your trustee will manage it.

7

• One thing is very important to note if you have
  been paying any of this type of debt by direct
  debit, go to the bank and cancel the arrangements.

8

• This is extremely important as with both the
  alternatives to bankruptcy Debt Agreements and
  Personal Insolvency Agreements you are not
  released from your debts until the final
  repayment is made.
• That could be five years, or longer.

9

• Once the bankruptcy is in place, your bankruptcy
  number and date of bankruptcy are recorded on the
  governments database
• You are there forever. It is a public document
  and can be accessed if a fee is paid, but this
  rarely happens.

10

• What it does mean is a black mark against your
  name with the commercial credit rating agencies.
• Its there for five years. Thats the credit
  rating to worry about. You may
• already be listed as having bad credit risk.

11

• Once you are bankrupt, your trustee will contact
  your bank and all your creditors to let them
  know, and ask them to contact him/her regarding
  the chances of your debt being repaid.
• Your bankruptcy is not advertised in a newspaper.

12

• Once you have gone bankrupt, your creditors are
  not allowed to contact you about your debt and
  they cannot reappear in three years time.
• Your bankruptcy trustee will secure any assets
  that will be part of your bankrupt estate and
  begin managing it while you put the stress of
  unpaid debt behind you, and get on with life.

13

• Once you have the protection of bankruptcy, you
  will find your focus will change from constant
  worry about the debt, to regrouping, living your
  life and recovering from the financial distress.
• Life will be happy and productive again, and you
  will regain your self-
• esteem.

14
THANK YOU