Once a bankruptcy order has been issued, you will lose control of your assets, which will be sold (subject to certain exemptions) to generate funds for your creditors. This includes any equity you may have in your family home, which the Trustee in Bankruptcy may realize through a sale of the property - even if the house is jointly owned. To avoid this undesirable circumstance, many individuals will contemplate an Individual Voluntary Arrangement (IVA).
After the bankruptcy order has been issued, you will typically be required to make payments to your Trustee in Bankruptcy (the individual appointed to administer your bankruptcy). In general, these payments will persist for three years. In addition, if you receive any money during your bankruptcy, such as an inheritance or a lottery victory, you will be required to deposit it into the bankruptcy trust for the benefit of your creditors.
A person who is bankrupt is subject to a number of restrictions. During the duration of the bankruptcy, accountants and attorneys may be unable to practice, and company directors may be unable to hold office. Typically, these individuals would wish to enter into an IVA.
In most cases, bankruptcy ends after one year, at which point, barring certain exceptions, you are released from your obligations and your creditors have no further recourse against you. Nonetheless, any mandated payments deducted from your income will continue for three years. In addition, the details of your bankruptcy will be stored with credit reference agencies and other organizations. This implies that obtaining any form of credit, including a mortgage, would be difficult and/or expensive for an extended period of time after a bankruptcy.
Remember
The repercussions of bankruptcy are extremely grave, and a person should always seek professional counsel if they are facing bankruptcy or considering a Debtors petition as a solution to their financial difficulties.""
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