Not everyone is in the position to pay off their debt. If that’s the case, Bankruptcy could possibly be the best solution for you.
If you are in a position where you are unable to pay back the money that you owe, there are a variety of routes you can go down which will help you with your repayments. After assessing your current financial situation and the state of your debt, it may be that you qualify for Bankruptcy. There are certain areas that need assessing to ensure that you are eligible for Bankruptcy, and our experienced team at MoneyAdvice will decipher your suitability in a matter of simple steps.
What is Bankruptcy?
Quite simply, Bankruptcy is when your debt and any other additional charges are legally written off, meaning you do not pay anything to your lender within the 12 months the bankruptcy is valid. After your appeal is signed off by yourself and your original lenders, they cannot contact you within those 12 months or ask you to pay for any of the money you owe.
If it comes to the end of the 12 months and your financial situation has not substantially improved, all of the money that you owe including that of the Bankruptcy will be made null.
How does Bankruptcy Work?
If your financial situation means you have no means to repay your debt within a credible time frame, and there are no other forms of debt solution that suit you, then Bankruptcy is what might be best. By declaring Bankruptcy through signed agreements from yourself, your lenders and us, all of the debt that you cannot afford at this time is written off and is done so within a legal contract. Under the terms and conditions of Bankruptcy, the only payments you will be liable to are any unsecured debts that you owe, but then that’s if you have the means to do so.
As previously mentioned, Bankruptcy is valid for 12 months from the date that it is officialised.