The process of being declared bankrupt, is both a legal process, and for most people who have declared bankruptcy, a very difficult process, even a little traumatic at times. So for these reasons it is important to find a lawyer to ensure that the legal aspect of the matter is being treated fairly and that you have representation. It is more than a mere technicality - declaring bankruptcy is very serious.
A court decid
es whether or not you are bankrupt. You or your creditors ask court to declare you bankrupt. You can actually be declared bankrupt, without your consent, if your creditors to file your bankruptcy. This is a bit scary!
Once you are declared bankrupt, an Official Receiver is appointed by the court. After interviewing you, the receiver will determine whether anything can be sold, based on what money and assets you have. If you have any assets, a liquidator or administrator would be appointed to sell them.
You will no longer control your finances and assets, which will now be done by the receiver / manager.
An official income payments can Order sought by the administrator, if you appear to have surplus income. The order is in place for a period of 3 years, but you can be discharged from bankruptcy after just one.
Note that bankruptcy is public news. Details of the bankruptcy will be published in the local newspaper and sometimes even the nationals. "Financial Associates' such as your utility (gas, electricity, water) suppliers will also be told about your bankruptcy and it is important for your future with regard to what controls you can have on finances, the ability to get a mortgage, etc.
To find the best lawyer will mean that your voice is heard and that the process is fair to you. It also helps you to at least feel you have little control over what can be a very difficult and challenging experience.
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