If you are a businessperson or an individual who has to clear off the debt that you have taken from various investors or creditors then a condition may arise where you are unable to pay off your debts. This condition is known as bankruptcy. In the British system it is also known by the name insolvency. In this condition you can file for the bankruptcy status with the court. When granted that status you would be saved from the various demands by your creditors. This will also help you to get a new financial start.
It is not that easy for anybody to file for the bankruptcy as one does not know about the legalities associated with this. One does not know what would be the after effects of the bankruptcy. One should be clear about this fact that filing for the bankruptcy does not always mean that the person is incapable of handling the business or the finances. In recent economic slowdown we have seen many examples of financial giants like Lehmann brothers going bankrupt. It could be all due to the factors that are not in control of a particular person. It might be that recent steep rise in the fuel prices could have lead to the downfall of your business. All these factors lead to the condition of bankruptcy so it should not be always treated as a black spot in your career.
You can take help of the various bankruptcy FAQ that are available on various legal websites or firms on how to go about the bankruptcy condition. From these bankruptcy FAQ’s you will get to know that you can either go for the Individual Voluntary Agreement (IVA) or for filling the petition for bankruptcy. In IVA you will pay the creditors as part of the debt in a fixed period of time (maximum five years) from whatever financial resources are left with you. Bankruptcy FAQ’s will tell you the details about IVA, bankruptcy petition and how you can approach the IVA through Insolvency Practitioners.