When one is not in a position to settle debts, it is advisable to file for bankruptcy.
In most cases, this is done voluntarily.
At times, the creditors may go to court to have a petition filed against you for failure to pay.
There are various options that one can try out, such as a repayment plan done to show how the debtor plans on settling the debt.
There are many chapters of the law that deal with the various categories of debt.
Under chapter 7 of bankruptcy, the debtors property is sold off and the money realized is divided among the creditors.
Among the assets that can be sold off are homes and cars.
In case it is jointly owned, part of which belongs to him is sold off under what is called the beneficial interest.
Transferring his beneficial interest to someone willing to buy it is done at a minimal charge in court.
It is quite fast to sell off the property if a buyer can buy the property plus the official receivers interest.
However, in case the property has little value at the moment, the court may decide to put on hold the disposal process for a period not exceeding three years.
It is quite important for the person facing bankruptcy to talk to the officer not to have the selling of the property delayed for three years.
Monthly payments for mortgages should be made to stop the owner from repossessing the property.
In case the official receivers interest is not taken care of in three years as the new laws stipulates, then the property belongs to the debtor.