Tuesday 22nd of September 2009
A football player has been declared "technically" bankrupt over a debt of less than £8,000.
Former Celtic player Bobo Balde was petitioned to go bankrupt by a creditor for a debt of £7,904 and accountant Bryan Jackson, appointed by the court to deal with the case, says Mr Balde could be unaware of the debt of there could be a misunderstanding.
"The usual course of action is to collect the funds by negotiation with the debtor or, if that fails, through arrestment of bank accounts or sequestration of assets," he stated.
For Britons with debts of over £15,000, an individual voluntary arrangement (IVA) could be a more favourable way to pay creditors and avoid the need for a bankruptcy hearing.
Indeed, if negotiations with a creditor do not prove fruitful, an IVA can instead lay the groundwork for an agreement between lenders and those in debt, and can also stop creditors taking further action.
A bankruptcy is seen as the last resort for many people and are normally invoked for significant debts because of the serious consequences going bankrupt can bring, such as being unable to have access to basic banking services.
By Neil Burton
- Alternatives to bankruptcy available, expert notes
- Bankruptcy 'should be a last resort' to tackle debt management issues
- Bankruptcy 'has improved attitude towards debt'
- Insolvency levels rising, figures show
- Negative equity leading to bankruptcy increase, says expert
- Heidi Montag and Spencer Pratt 'considering bankruptcy'
