| Bankruptcy |
 What is Bankruptcy?
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order. Bankruptcy is often worth consideration if your debts are high and your affordability is low, however it should always be viewed as a last resort. This is because the effects of declaring yourself bankrupt can be particularly severe. Not only is your credit file going to being drastically impaired, but details of your bankruptcy will be publicly advertised and assets such as properties, savings, vehicles and pension schemes could be sold off to repay your creditors.
It is also worth noting that if you are ever faced with the prospect of bankruptcy you should look at alternatives as soon as possible such as an Individual Voluntary Arrangement (IVA).
We’re here to help you
If you believe that bankruptcy is going to be your best option, we can give you full details of how bankruptcy works and what the probable implications will be. Additionally, we can explore any alternatives so that you can make an informed decision as to which solution is best. If it transpires that bankruptcy is going to be your primary option, we can put you in touch with your local county court and even arrange for a solicitor to work on your behalf and hold your hand throughout the whole process.
If a creditor is petitioning for your bankruptcy and you wish to avoid it – we may still be able to help. However, you need to take immediate action and should call us straight away on 0800 622 6480.
Advantages of Bankruptcy
Fresh Start – You will typically be discharged from your debt in 12 months and are then able to start again.
Debt Written Off – The debt you are unable to repay will be written off when you are discharged from bankruptcy.
Disadvantages of Bankruptcy
Loss of Assets – Any asset of value such as properties, vehicles, savings etc will almost certainly be sold and the proceeds shared amongst your creditors.
Loss of Professional Status – Some employment opportunities will be prejudiced. You may also face rejection from many associations and societies.
Loss of Privacy – Unlike other solutions, details of your bankruptcy will be advertised in the London Gazette as well as the local press for all to see.
Loss of Accounts – Any bank accounts and credit cards will be closed. Any item you may be leasing or purchasing on HP, such as a car, will immediately be returned to the owner.
Legal Process – Numerous forms need to be completed and you will be required to have an extended meeting with the Official Receiver, and, if appointed, the Trustee in bankruptcy who will thoroughly investigate your affairs.
For a no obligation telephone consultation, call us FREE on 0800 622 6480
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