What is bankruptcy?
Many people instantly panic when they hear bankruptcy, it is often the final solution to resolve any debt problems and it’s definitely a big step. However, it may not necessarily be the last option left. Our advisors will offer you advice on whether or not bankruptcy is the best option for you and, depending on your circumstances, discuss other options that are still available.
Before you declare bankruptcy it is vital to consider what other alternative solutions exist, as, in the majority of cases, options such as IVAs or a Debt Management Plan may still be available. Our advisors will always ensure that you are on the right plan to solve your financial situation.
If you feel like bankruptcy is the right choice for you here are a few benefits it can bring:
What benefits can Bankruptcy bring me?
- It can make you completely debt free, usually within 1 year.
- It can stop all interest and charges.
- All your debts are frozen until they are written off.
- Your monthly payments are made into something more affordable.
- It will stop creditors chasing you so you don’t need to worry about them.
What are the consequences of going bankrupt?
- You may have to sell valuable assets such as your car or home to repay your debt.
- You will be able to keep only the assets necessary for basic standard of living.
- Any extra income you make must be used to pay your creditors for up to 3 years.
- Your credit rating will drop.
- Not all debts are included in this, so you could find yourself with a few debts not being included.
- It may affect your employability in certain professions.
- Similarly, it may affect current employment, for example, you can’t be a director if you are bankrupt.
- An advert will be placed in the London Gazette which gives details of bankruptcy. It will also be available to view on the Insolvency Service website.
Is Bankruptcy right for me?
This decision is best made when you’ve been given the help and advice we provide. If you feel that bankruptcy is the right option for you then Apply Online or call us on 020 8010 1534 and one of our advisors will discuss the right plan of action to solve your current financial situation.