Bankruptcy

This is an option for individuals only, and arises where there are insufficient assets to meet liabilities. It should only be considered as a last resort, once all other options have been explored and exhausted.

The bankruptcy is usually advertised in a local newspaper, and also the London Gazette. All your assets are passed to an appointed Trustee who has a duty to realise them and use the funds to pay the creditors. Under bankruptcy, you are allowed to keep essentials for living, and tools of your trade.

Valuable cars, furniture, jewellery will all be sold. If there is equity in your property, then this will also be realised. Your bank accounts will be closed, and your credit cards stopped. There are restrictions in the future as to the type of work you can do, and you will be unable to act as a company director during bankruptcy.

Sequestration

This is a Scottish legal term for personal bankruptcy. It involves transferring your assets and property into the hands of a trustee for the benefit of the creditors. The Trustee will then have a duty to realise the assets, and may also seek a contribution from your income if you are in regular employment.

Bankruptcy & Sequestration really should only be considered in extreme circumstances, as a last resort. HJS Recovery will discuss all the options with you, and will work with you and your creditors to find a solution that works.

Act now, call on free phone 0800 0141 130.