While a lot of people see bankruptcy as a negative, and their are negative aspects of it, such as bad credit for atleast 7 years. It is also a very freeing and liberating move. Imagine stressing for years about being unable to make your house repayments? What does that do to your health, and your relationship with your family? Bankruptcy is like a new start. A fresh start.

How To Go Bankrupt

A court will only make a bankruptcy order once a petition has been made. This can be done by either you or one of your creditors. The official receiver, usually a civil servant, will be responsible for the protection of your assets and the administering of your estate – unless you have appointed an insolvency practitioner.

All assets will now be disposed off by official receiver or insolvency practitioner, and they will use all monies recieved to repay creditors. You are usually allowed to keep a certain amount of personal belongings.

That is how to go bankrupt

. It is not a nice process, but sometimes it is better off in the long-term.