Best Bankruptcy Lawyers in Fareham

About Bankruptcy Law in Fareham, United Kingdom

Bankruptcy is a legal process that helps individuals who are unable to pay their debts find a solution to their financial difficulties. In Fareham, as in the rest of England and Wales, bankruptcy is governed by national legislation and aims to provide a fresh start for those struggling with overwhelming debt. When an individual is declared bankrupt, their assets may be used to pay off creditors, and after a set period, usually one year, most of their remaining debts are written off. This process not only protects the debtor from legal action by creditors but also involves certain restrictions and obligations.

Why You May Need a Lawyer

Seeking legal advice is crucial when facing bankruptcy for several reasons. A lawyer can help you understand all of your options, which may include alternatives to bankruptcy such as Individual Voluntary Arrangements (IVAs) or Debt Relief Orders. You may need legal help if creditors are threatening court action, or if you receive a statutory demand or bankruptcy petition. Lawyers also play a vital role in reviewing your financial situation, preparing necessary paperwork, guiding you through court hearings, and ensuring your rights are protected throughout the process. In complex cases, such as disputes over assets or if you own a business, legal representation can help minimize adverse consequences and navigate tricky legal requirements.

Local Laws Overview

Bankruptcy in Fareham is subject primarily to the Insolvency Act 1986 and the Insolvency Rules 2016, both of which apply across England and Wales. Key aspects include:

• Bankruptcy petitions can be made by an individual, a creditor, or by the government on behalf of HM Revenue and Customs.
• The minimum debt amount for a creditor to start bankruptcy proceedings is currently 5000 pounds.
• The Official Receiver is appointed to manage the bankruptcy process, investigate financial affairs, and distribute assets to creditors.
• Most bankruptcies last 12 months, but this can be extended in cases of non-cooperation or dishonesty.
• Certain debts, like court fines and child support, are not written off by bankruptcy.
• Bankrupt individuals face restrictions, including restrictions on obtaining credit and running a business.
• Homeowners may face repossession of their property if there is sufficient equity to repay debts.

It is important to note that while the process is national, local courts in or near Fareham may handle bankruptcy hearings, and local law firms can provide face-to-face guidance and support.

Frequently Asked Questions

What is bankruptcy and how does it work in Fareham?

Bankruptcy is a formal court process for people who cannot pay their debts. It allows your assets to be shared among creditors and usually results in most debts being written off after 12 months. The process is managed by the Official Receiver and follows national laws.

How do I apply for bankruptcy in Fareham?

You can apply by completing an online application through the Insolvency Service. After submission and payment of the fee, the bankruptcy adjudicator decides whether to issue a bankruptcy order.

How much does it cost to go bankrupt?

As of 2024, the fee to apply for bankruptcy in England and Wales is 680 pounds. This fee is payable to the Insolvency Service.

Will bankruptcy wipe out all of my debts?

Most debts can be written off through bankruptcy, but some are excluded by law. These include student loans, child maintenance, court fines, and social fund loans.

Can I keep my home if I go bankrupt?

If your home has little or no equity, it may not need to be sold. Otherwise, the Official Receiver may sell your home to repay creditors. Always seek advice before proceeding.

What happens to my belongings?

You are allowed to keep essential household goods and tools needed for your work. Luxury items may be sold to pay your debts.

How long does bankruptcy last?

Bankruptcy typically lasts 12 months, but restrictions can continue for up to 15 years in cases of serious misconduct.

Will my bankruptcy be made public?

Yes, all bankruptcies are entered on the Individual Insolvency Register, which is publicly accessible.

How will bankruptcy affect my credit rating?

Bankruptcy will appear on your credit report for six years, making it much harder to obtain credit during and after this period.

Can I run a business during bankruptcy?

You cannot act as a company director or form, promote, or manage a limited company without court permission. You must also disclose your bankruptcy status when obtaining credit over 500 pounds.

Additional Resources

There are several organizations and governmental bodies offering support and information about bankruptcy in Fareham:

• The Insolvency Service: Provides official guidance, forms, and the bankruptcy application system.
• Citizens Advice Fareham: Offers free and confidential advice on debt and bankruptcy.
• StepChange Debt Charity and National Debtline: Both provide telephone and online support for those struggling with debt.
• Fareham Borough Council: May offer local support or signpost to advice services.
• Local solicitors and law firms specializing in insolvency law.

Next Steps

If you are considering bankruptcy in Fareham, start by gathering details of all your debts, income, and assets. Arrange a confidential appointment with a local lawyer or debt adviser, who can explain both bankruptcy and possible alternatives. Seek advice before taking any steps, as bankruptcy is a serious legal decision that can have a lasting impact on your life. Ensure you are fully informed about all of your legal rights, obligations, and the consequences for your property and employment. Finally, if you decide to proceed, your legal adviser can guide you through the bankruptcy application and represent you if necessary in any court proceedings.