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Bankruptcy law in Leeds, like in the rest of the United Kingdom, is primarily governed by the Insolvency Act 1986 and the Enterprise Act 2002. These laws set out the procedures for declaring bankruptcy and its implications for individuals and businesses. When declared, bankruptcy commonly results in selling most of the debtor's assets to pay off their debts, but it also provides a fresh start for the indebted person, free from financial commitments.
Hiring a lawyer specializing in bankruptcy can be beneficial in several ways. Firstly, the process of declaring bankruptcy involves complex legal procedures which can be difficult to understand and handle without professional assistance. Additionally, a bankruptcy lawyer can provide advice on whether bankruptcy is the best solution for your situation, or whether less drastic measures may be preferable. They can also help protect your rights and negotiate with your creditors.
In Leeds, like in the rest of the UK, bankruptcy is available to both individuals and businesses who cannot pay their debts. Individuals may apply for a Debt Relief Order (DRO) or an Individual Voluntary Arrangement (IVA). Businesses on the other hand may file for administration, liquidation, or a Company Voluntary Arrangement (CVA). However, bankruptcy has serious implications including restrictions on obtaining credit, directorships, and loss of certain assets. Therefore, it's strongly advised to seek legal advice before proceeding.
The process involves filing a petition to the court along with detailed financial information. If the court declares you bankrupt, an Official Receiver is appointed to sell your assets and distribute the proceeds among your creditors.
Bankruptcy usually lasts for 12 months, after which any remaining debts are written off. However, the bankruptcy order remains on your financial record for six years.
No, some debts such as student loans, fines, and some other types of debt cannot be included in bankruptcy.
Bankruptcy has a serious impact on your credit rating and will make it difficult for you to obtain credit for a number of years.
Some essential assets such as basic household goods and equipment necessary for your work or business are usually exempt from being sold.
The Insolvency Service, a government body, provides detailed information and advice concerning bankruptcy. Additionally, Citizens Advice and National Debtline also offer free, confidential advice on managing debt and bankruptcy.
If you are considering bankruptcy, it is recommended to seek professional legal advice. A lawyer will help you understand its implications, guide you through the process, and help protect your rights. It's also beneficial to engage with resources such as the Insolvency Service, Citizens Advice and National Debtline to gain additional information and support.
