Consumer Bankruptcy – What is it?

Posted: August 15th, 2013 | Author: | Money

In many countries, the status of a bankrupt and consumer bankruptcy is considered to be the only possible way out of debt and be free from creditors. In our country, unfortunately it works a bit differently. To announce consumer bankruptcy you need to write an application to the bankruptcy court.

VinothChandar / photo on flickr

VinothChandar / photo on flickr

It should include a list of our assets, creditors, and the amount of debt. In addition, for the application you have to pay 200 pounds and fortunately it can be avoided by writing a statement about the poor economic and property state. Consumer bankruptcy in our country is rarely granted, and so far only in special cases. These include primarily situations where financial liquidity is not lost through his own fault, and because of an illness or accident.

If you work and income is lost through his own fault, the status will most likely not get bankrupt. If you even get the status of a bankrupt, it does not mean that our problems are over. Because all of our assets including housing, car and so becomes the so-called “bankruptcy estate” and therefore the assets that will be put up for sale, and the gain from the sale will go to creditors. The process of bankruptcy lasts for five years, during which the property will be auctioned slowly and claims paid. Only after this time, we can get the redemption of the remaining debt.

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