You are immediately free from debt and will not be responsible for any of your pre-existing debts. It is a fresh start for you and your family to start again and build yourself up from a position of strength. You are immediately protected from all existing creditors who form part of your bankruptcy.

You should understand that it is extremely unlikely that you will be able to borrow money from a high street lender. It is not unusual for a self-employed person to obtain start up or project funding from a private source which is acceptable for an un-discharged bankrupt (providing the lender is aware of your circumstances).

Once you are discharged from bankruptcy (usually after 12 months, but sometimes sooner) you will be able to rebuild your credit file.

Bankruptcy restrictions

Following bankruptcy certain restrictions are placed on you. These are as follows:

* You lose control of your assets (house, savings, expensive car (over �2500)
* You cannot obtain credit for over �500 without the declaring that you are bankrupt..
* You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
* You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.

Is my occupation affected?

If you go bankrupt then you will be automatically excluded from some professions:

• Member of the Law Society


• Estate Agent


• Insolvency Practitioner


• Stock Broker


• Pub Licensee


• You cannot act as a company director.


• Charted Accountant / Lawyer.


• Justice of the peace (JP).


• member of parliament.


• member of the local authority.

For some other professions, dismissal would be at your employer's discretion. Check your employment contract or consult your HR department or union.

Bankruptcy Pros and Cons

• All of your pre-existing debt is wiped off.
  
• Creditors can no longer hassle you.


• First-time bankrupts are usually discharged within 12 months (sometimes sooner).


• If you rent or live with parents you don't risk losing your home.

Author: Elliott Parker

About the author:
Elliott Parker is an advisor at Clear Insolvency.
Bankruptcy Information, IVAs and Debt Management Information and Assistance

Article source: Free Bankruptcy Articles.

With the widespread fear of terrorists ever-present, the rules of sending money transfers to Pakistan have changed drastically. Of the many ways to wire money, some are of course preferred over others.

Politics in the country of Pakistan have had a drastic affect on businesses that were once successful. What were once reliable options now look to be inconsistent. And with the country's current conditions, the best way to transfer money is by way of a credible institution.

One of the more reliable options is through the S.W.I.F.T. wire transfer system, or the Society for Worldwide Interbank Financial Telecommunication. S.W.I.F.T. does not store and manage accounts as banks do, instead the sole responsibility of S.W.I.F.T. is to move data from bank to bank. All transactions are chronicled with both banks involved, and are at times monitored by governmental agencies. A major drawback of systems such as these is that both parties are required to have a bank account with that particular institution. The sender must have an account in the country the money is being sent from, and the recipient must present their account number. This form is reliable and only takes about two or three days depending on the bank, but can bring on a dilemma if the person you need to get the cash to does not have a bank account.

If your recipient does not have a bank account, another feasible option is a location-based service. These businesses are located all over the world and charge a fee based on the amount transferred. Unfortunately, there is a restriction in place as to the amount you can wire. And although you could possibly send multiple transfers, it would significantly dent your wallet and some services allow no more than one transfer to the same person in a day.

The most dated form of cash transfer to Pakistan is the hawala. With roots in Islamic law and the good old-fashioned honor system, this service is now illegal after terrorists began using it for money laundering. With this option, the hawala broker charges a fee, and in turn the broker would call the location where the money was to be sent, then promise to reimburse the other hawala broker for completing the deal. This method is still being used today, but is no longs a legitimate, legal form of money transferring.

As it stands, the most practical way to transfer money remains through online fund transfers or a specialized wire transfer service.

Author: Money Transfer

About the author:
ATMCASH is a cheaper solution to send and receive money internationally. Its a easy, convenient, and the best value when sending money across the country or across the world. You can get money from over 1 Million ATMs worldwide. Send Money to Pakistan

Article source: Free Bankruptcy Articles.

According to the latest Insolvency Service figures for England and Wales published on 1st May 09, nearly 5000 companies went into liquidation in the first quarter of 2009. This figure is over 50% higher than the same quarter of 2008. Clearly the global recession together with the lack of available credit due to the credit crunch, is having a significant downward effect on business activity. Many analysts believe that the recession will continue until the end of 2009 at least and that its effects will continue to be felt well into 2010.

With increasing numbers of businesses finding themselves in serious trouble, more and more company directors and shareholders are faced with a decision whether to invest more of their own funds into the business to allow trading to continue. Even if such funds can be made available, they are best spend helping to develop and improve the current business model - e.g. on advertising, marketing, investment in plant etc. However, all too often the money is likely to be swallowed up paying for legacy debts. With this reality, potential investors are all the more likely to decide that the further investment is not sensible and the better option is to call it a day and allow the business to be wound up.

Clearly in the current economic climate, the focus from Government down is to promote trade and growth rather than business failure. As such, it is important to consider how businesses can be preserved and new investment can be focused on giving a troubled business a new lease of life. The process of business Phoenixing is widely regarded as a practical method of achieving this goal.

Phoenixing (also known as Pre-Packing) is the process by which the sound elements of a failing business can be packaged up and purchased by a new company. The new company then starts to trade in the same business space but without the burden of legacy debts and onerous or unwanted property or leases. As a result, investment funds are targeted specifically at investing in the growth of the business giving it the best chance of success.

The Phoenix process is relatively straight forward. Firstly the assets of a business including any good will are properly valued. A new company is formed and investment funds are deposited within the new business. A Sale and Purchase agreement is then drawn up detailing the assets of the old business and the amount required to purchase them based on the valuation. The old company is then liquidated. Immediately or shortly after the liquidation, the Administrator then effects the sale of the business assets to the new company as per the Sale and Purchase agreement. The proceeds of the sale are distributed to the old company's creditors.

Much media comment has been focused on the Phoenix process particularly in the first quarter of 2009. One of the concerns raised is that the creditors of the old failed business are left with little hope of full repayment. Unfortunately this is often the reality. However, it is important to recognise that this situation is a direct result of the failure of the old business. Where a business is struggling, if additional investment is not forthcoming then it will fail and face liquidation. In this situation, it is highly likely that creditors will not be paid in full. As such, even if a Phoenix business is started, the position that creditors find themselves in is due to the old company failure and not a direct result of the Phoenix process itself.

In fact, the pre-packed sale of the old business assets to the Phoenix company may often get the best possible return for creditors. This is because the value of the business which may largely be made up of current contracts and good will, is often far higher if it can be sold as a package to a new Phoenix business. If the failed business is liquidated or put into administration, the subsequent value of simply selling any physical assets and distressed stock will almost certainly be lower thus getting a far worse return for creditors.

In addition to improved creditor returns, the Phoenix process offers other significant advantages. In particular, a new trading company is formed which has the ability and capacity to continue to trade with suppliers and customers this preserving future revenue streams for them despite their potential losses suffered from the previous failed business. Often the new Phoenix company will occupy the same premises as the old business thus protecting landlord's rents. In addition, employment is protected as the new business will want to take many of the old employees whose employment will be protected under TUPE (Transfer of Undertaking and Protection of Employment) rules.

Given the significant advantages, directors and shareholders would do well to consider the Phoenix process while deciding how to resolve the problem of a failing businesses. Clearly, Phoenixing is not right for all situations and independent advice must be sought from a business insolvency advisor. However, in these troubled economic times, all options for preserving business and employment must be investigated and Phoenixing is certainly able to aid this process.

Author: Derek Cooper

About the author:
Derek is Managing Director of Cooper Matthews Limited (http://coopermatthews.com), and a member of the Turnaround Management Association UK
Cooper Matthews specialise in Business Recovery Services Advice offering provide straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses


Article source: Free Bankruptcy Articles.

As the recession continues to bite, more and more businesses are finding it difficult to continue trading. However, very often these difficulties are not because customers have stopped buying completely. Rather, they are buying in reduced volumes and asking for lower prices.

Facing these circumstances, many businesses could continue to trade if they did not have the burden of servicing legacy debts. Since the Enterprise Act of 1984, it has been possible to request relief from corporate creditors using a Company Voluntary Arrangement or CVA. With the agreement of creditors, a CVA allows a portion of corporate debt to be repaid at a manageable rate over a set period of time, the remaining debt being written off. However, this procedure has long been criticised by both creditors and insolvency professionals alike due to the high percentage of early failures. The main argument against the CVA is that the fundamental structure of the business and its management team do not change. As such, even if the burden of legacy debt is lifted, the reasons for past failures are not likely to be resolved in the future.

Given the criticism levied against CVAs, the process of Phoenixing (also known as Pre Pack sale in liquidation or administration) has become more widely considered as a practical way of saving a business. Simply put, the act of Phoenixing is where a new company is formed which then buys the assets, contracts and goodwill of the failing business for a reasonable market rate. The legacy debt is left within the old business which is then liquidated thus allowing the new Phoenix business to trade on, debt free.

Since the beginning of 2009, much comment has been made about the Phoenix process in the media. Very often this has taken a negative stance because of the fact that creditors are left with unpaid debts which may in turn lead them to suffer their own financial difficulties. However, what has been largely overlooked in these published arguments is the reason for the failing company is not the Phoenix process. The reason for the failure was the company's inability to continue to trade. In these circumstances, liquidation was extremely likely if not inevitable whether or not a Phoenix process took place. As such creditors would always have been out of pocket.

A further criticism of Phoenixing is that creditors are not afforded the right to reject the new company's proposal to purchase the business assets from the failing company. However, it is widely recognised that to go through an open process of sale due to failure (often using administration) often destroys many of a company's valuable assets such as good will and contractual obligations. In addition, discussing matters with creditors before a potential sale of assets opens the possibility of the creditor taking unilateral recovery action which may well be detrimental. As such, a Pre Packaged sale will actually deliver the best possible return to creditors. Creditors are afforded increasing protection in terms of getting the best deal when the old business assets are sold. In November 2008, the Insolvency Service published strict guidelines for this area in the form of SIP (Statement of Insolvency Practice) 16 which requires insolvency practitioners to ensure that proper market value is paid for the assets and a full report of why this was beneficial to creditors must be submitted to them.

The arguments for the Phoenix process are compelling. There is the obvious advantage that the new business is not saddled with the old company's debts. In addition, unlike a CVA, there is no obligation for debt repayment. Fundamentally and unlike the CVA, a Phoenix allows a new business to begin with the introduction of new procedures and ways of working. All or part of the management team may remain the same. However, inappropriate property location or lease agreements are not taken on by the new company giving it every chance of success. In addition, the new Phoenix company will offer a far better chance that employees' jobs are protected than if the business were simply liquidated. TUPE (Transfer of Undertakings and Protection of Employment) rules apply meaning that the maximum number of jobs are saved.

Given these advantages it seems certain that Phoenixing will be seriously considered by many business owners trying to manage the issues of a failing company. This is not to say that the process will be right in every situation. However, with increasing numbers of businesses under financial pressure and at risk of failure, Phoenixing must certainly be given serious consideration.

Author: Derek Cooper

About the author:
Derek is Managing Director of Cooper Matthews Limited (http://coopermatthews.com), and a member of the Turnaround Management Association UK
Cooper Matthews specialise in Business Recovery Services Advice providing straight forward insolvency advice for businesses with financial problems. They have significant experience in working with small to medium sized businesses.


Article source: Free Bankruptcy Articles.

It's an unfortunate fact that business owners sometimes have to file for bankruptcy protection. If you rely on your sole proprietorship for income, and the business isn't generating enough revenue for you to pay your bills, you may be considering personal bankruptcy.
What happens to your business, though? Does personal bankruptcy mean small business bankruptcy as well?
If you have a sole proprietorship, then your personal finances and your business finances are one and the same. Bankruptcy does not allow you to choose which debts will be included, and which will be excluded.
Your business assets will be scheduled along with your personal assets. Since most business assets will not be considered exempt, they will become the property of the bankruptcy estate, and will be liquidated to pay your creditors.
The liquidation of your business assets will mean, in most cases, that you will have to shut down your business.
If you want to keep your sole proprietorship running, you have a couple of options. First, you can consider filing for Chapter 13 bankruptcy instead of Chapter 7. Chapter 13 does not erase your debts, but it does provide a means for you pay your creditors over a period of time, while still meeting your day to day financial obligations.
You would repay both your personal and your business debts under Chapter 13 bankruptcy, and you would be able to continue running your business.
The other option is to incorporate your business before you file for bankruptcy. Keep in mind, doing this does not automatically mean that you will get to keep your business. The ownership will still transfer to the estate when you file bankruptcy, but you have the option of purchasing your stock back at market value. If your business does not have any inventory, and most of its assets are subject to bank liens, the market value of the stock may be less than the debt repayments you'd make under Chapter 13.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.

If you are considering filing for bankruptcy, but you own an incorporated business, you're probably wondering if your personal bankruptcy will mean small business bankruptcy as well. Especially if the business is a viable revenue source, you want it to keep operating after your bankruptcy discharge.
The common belief is that personal bankruptcy won't affect an incorporated entity. After all, you incorporated your business to separate your personal liability from your business risks, right? If incorporation protects you from corporate liability, shouldn't it also protect the business from your personal liability?
Unfortunately, the business is not protected if you file for bankruptcy protection. Although you do not technically own the corporation's assets, you do own the stock. Since stock is just ownership rights to the business, your stock (and the ownership of the corporation) will transfer to the estate after you file for bankruptcy protection.
Because the estate then owns the stock, the trustee can liquidate the assets of the company to pay your creditors. Once the assets are liquidated, the corporation will most likely have to cease business operations - just as if you had filed for small business bankruptcy.
If you want to keep your business operations going, you do have the option of buying back the stock from the estate at fair value -the liquidation value of the stock. Since the liquidation value typically isn't very high, especially if the corporation's assets are subject to a bank's lien, this can be a good option for eliminating your personal debt while still keeping your business running.
If you are considering filing for personal bankruptcy, it will be worth your time to determine the fair value of your corporate stock, so you will know how much you will need to buy back your business from the estate once your bankruptcy petition is filed.

Author: Jay Fleischman

About the author:
New York bankruptcy lawyer Jay S. Fleischman is the Managing Attorney of Fleischman Consumer Law Center. He has helped thousands of New York consumers end their bill problems and get back their good credit. Go to http://www.NewYorkBankruptcyHelp.com to learn more about your options, ask questions, and get more information.

Article source: Free Bankruptcy Articles.