Declaring Bankruptcy

Bankruptcy may be the right solution for you if you have major debt problems. Declaring bankruptcy in the UK will allow you to waive or write off the debts that have become unmanageable for you.

How Bankruptcy Works

Entering into bankruptcy is a big step to take. But sometimes you might not make this decision yourself. T hat’s because other people can make you bankrupt. There are three ways you can go bankrupt.

They are:

1. A creditor putting in an application for your bankruptcy.
2. Applying for bankruptcy yourself.
3. Your IVA Supervisor petitioning for your bankruptcy.

We can help you understand everything that’s involved with all of the ways you can be made bankrupt.

Benefits

• You could be discharged from payments to your debts within 12 months.
• All qualifying debts written off.
• Eliminates the pressure of dealing with the companies you are in debt to, as all communication with them has to go through an official receiver.
• The companies included can no longer take legal action against you.
• You will be able to keep enough money to live on as well as essential belongings – including a car worth £1,000 or less if it is needed for work

Risks

• You lose control of finances and assets, the official receiver or Trustee appointed on your case will decide what happens to your valuable asset and finances.
• Bankruptcy may affect certain types of employment.
• Your credit file will affected for 6 years.
• To petition for your own bankruptcy it could cost £680 (all though you can pay in instalments).
• If you deemed to have disposable income you could have income payments imposed for up to 36 months.