Making a Fresh Start
Bankruptcy enables you to make a fresh start by writing off all your unsecured debts. If you don’t expect your financial situation to improve in the foreseeable future bankruptcy, which is a form of insolvency, might be the right solution for you.
Bankruptcy can affect your job, home and credit rating so it is important to take impartial advice. Citizens Advice Bureau has produced a fact sheet on bankruptcy – click here to download it.
Once you have decided bankruptcy is the right option for you, you’ll need to file a bankruptcy petition at your local county court, after which your finances will be investigated by the court.
People are usually discharged from bankruptcy after 12 months, although it will most likely affect your credit ratings for a number of years afterwards.
There are two fees to pay when you file your bankruptcy petition. In England and Wales these are a £175 court fee (which may be waived in certain circumstances) and a £525 official receiver’s fee (which always has to be paid).
Any valuable assets that you have may be sold by the official receiver with the proceeds using to repay some of your debts.
