What does bankruptcy mean? It means that you are no longer capable of paying back the loan taken out on your business. If your company is bankrupt then you will no longer have access to credit facilities such as loans, overdrafts and other credit facilities. A bankrupt company or a person filing for bankruptcy in the UK will not be able to get a mortgage, a loan. Bankruptcy will also prevent you from using some communal services such as a council, the NHS or the police.
The UK insolvency legislation covers a number of different scenarios. For businesses this means that they could face being taken over by another firm which is based in the UK. This could happen if the business is insolvent for less than two years. For this reason it is very important to understand what the consequences would be if your business were to be taken over.
The second scenario, which involves taking over your business can also affect those creditors that you owe money to. This means that if you have been sending out regular payments to your suppliers and your accounts have still been open then you may have to face a claim from your suppliers that could result in the removal of your business license. As well as this, some suppliers may be owed money by you and may not be able to sell products to you. If this is the case then you will need to tell the supplier that you have become bankrupt. You should contact them immediately to ensure that they do not lose any money out of the deal.
If you have personal bankruptcy then there are further implications that relate to assets and liabilities. Your assets and liabilities will be reviewed in order to see what value there is in the disposal of them. The court will want to see how long you have been living in debt and whether you have had financial problems in the recent past. You will not be able to keep any assets with you during your bankruptcy period as they will need to be sold to clear your liabilities.
What does bankrupt mean when it comes to bad credit? When you are declared bankrupt the debts that you owe will now have priority. This means that the creditors will try their best to get their money back from you. At the same time you will be deemed incapable of taking on any more debt. This will have an immediate effect on your ability to get loans and credit.
If you need to know more about the consequences of bankruptcy then it is a good idea to speak to a bankruptcy lawyer who can give you more information. It is important to understand what does bankrupt mean before going into a bankruptcy process so that you can make sure that you understand what you will be facing ahead. To find a bankruptcy lawyer in your area simply do a Google search for ‘bankruptcy lawyers’ and you will be presented with a list of lawyers who specialise in this area. They will be able to fill you in on all of the relevant information regarding bankruptcy and the implications that it will have on your life.