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Frequently Asked Question Of Fredericksburg Bankruptcy Lawyers

If you have ever thought about filing for bankruptcy it is likely you have several questions first. These frequently asked questions and answers were provided to us by local bankruptcy attorneys in Fredericksburg va.

How does the bankruptcy process work?

If you want to declare yourself bankrupt you have to start the process by filing a Bankruptcy Petition. Once the bankruptcy petition has been filed, a court date will be set for the initial hearing to see if a Bankruptcy Order should be made. Once a Bankruptcy Order has been made, you will be declared bankrupt.

How much does it cost to go bankrupt?

You will have to pay three different fees to go bankrupt:

1) a Court Fee.

2) Representation fee.

3) the Official Receiver's Deposit.

4) A fee to swear the statement of affairs (not payable if the hearing is in a County Court).

Where is the Bankruptcy Order made?

The Bankruptcy Order is made at the same court where the Bankruptcy Petition was filed. Bankruptcy Petitions are normally filed at a county court near to where you live and work or at the High Court.

What is the outcome of a bankruptcy hearing?

At this hearing one of the following things can happen:

1) proceedings are delayed because more information is needed by the court

2) the Bankruptcy Petition is dismissed

3) A Bankruptcy Order is made and you are declared bankrupt.

Who deals with bankruptcy cases?

The Official Receiver is responsible for the administration of bankruptcies. The Official Receiver usually acts as a trustee of the bankrupt's estate and is responsible for investigating the bankrupt's financial affairs.

What do I have to do if I'm made bankrupt?

Once a Bankruptcy Order has been made, you are obliged to give the Official receiver information about your financial affairs. This includes handing over your assets, bank statements and insurance policies. If you are made bankrupt, you are not allowed to obtain credit of over £500 without disclosing the fact that you are bankrupt.

What are the effects of bankruptcy?

The Trustee controls all of your assets during bankruptcy, including your home. You won't be able to obtain credit of more than £500 without disclosing your status and there are restrictions on your business activities. Certain public offices are closed to you. Restrictions end when the bankruptcy is terminated after 12-months.

How will bankruptcy affect my credit rating?

The fact that you were made bankrupt will be registered with credit reference agencies and will stay or your file for six years. After this period, you might still have to declare that you were bankrupt, especially if you apply for a mortgage. 

If you have additional questions about filing for bankruptcy in Fredericksburg, you can visit https://fredricksburgbankruptcyattorney.business.site.