When you declare bankruptcy, your case will be brought in front of the courts. If you are planning on declaring bankruptcy, there is no obligation to notify your creditors until you have been officially declared bankrupt.
From there, most creditors will have to cease their debt collection efforts.
Debtors in bankruptcy cases
In a bankruptcy case, creditors are entitled to share in any distribution from the debtor's estate. They are also entitled to be heard by the court in matters concerning the debtor's plans. Creditors can often challenge a debtor's right to bankruptcy.
Often, a creditor can petition the court to declare you bankrupt. The court will look at the case they put forward before deciding whether to dismiss the petition or declare the debtor bankrupt. A creditor can only petition for you to be made bankrupt if the debt is unsecured and for a fixed sum that the debtor appears unable to pay.
It's important to know exactly how much you owe to your creditors. To know if your creditors have reason to declare bankruptcy against you, seek advice and debt management help from a debt help specialist or debt services.
Know where you stand with Legal Advice Helpline
Maintaining control over your debts can be a hard and stressful situation. However out of control debts can often lead to bankruptcy, or a creditor declaring bankruptcy against you.
Make sure you have the best advice available to you before you declare bankruptcy or before you think a creditor might declare bankruptcy against you.
Call Legal Advice Helpline on 0800 612 3042 for more information on debt services that can help you.