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Are you struggling to pay your debt?
Bankruptcy is usually considered a last resort but can be an effective solution for those in severe financial difficulty as all debts included are written off.
We provide IVAs by our licensed insolvency practitioner regulated by the Insolvency Practitioners Association. We provide information about all debt solutions but we do not provide advice as we are not regulated by the Financial Conduct Authority.
Bankruptcy is a legal Court Order that can see you getting your debt written off if you struggle to pay it back. While it is a solution to becoming debt-free, it should be considered a last resort. Bankruptcy itself is a year-long process, but the long-term impact this has will last around six years.
It is a solution which you can apply for yourself directly via the Government website, or alternatively, creditors or 3rd Parties that you owe money to may also request you be made Bankrupt. This is called a ‘Bankruptcy Petition’ where your creditors may begin legal proceedings against you if you owe them over £5,000 and continue not to repay them.
Are you worried about debt? Speak with our team today and discuss your options.
Advantages and Disadvantages of Bankruptcy
There are many things to bear in mind when considering debt solutions. We’ve outlined some points that are important know with Bankruptcy:
What Will Bankruptcy Cost Me?
Like some other debt solutions, fees are involved when opting for bankruptcy.
The total cost is £680, which covers two aspects:
This fee must be paid in full before your application can be considered, but you can pay in instalments if needed.
If your Bankruptcy is undischarged and you have a disposable income after essential living costs have been made, an income payments order is issued; this can last up to three years.
Bankruptcy Vs. Other Solutions
Bankruptcy Vs. IVA
Both of these solutions may enable you to write off large sums of debt, however, important things to consider are:
Here’s some further information if you are choosing between an IVA or Bankruptcy
Bankruptcy Vs. Debt Management Plan
These are many differences between these two solutions, and the main ones are:
Here’s some further information to consider if you are looking at Bankruptcy or a Debt Management Plan.
Bankruptcy Vs. Debt Relief Order
These are two very similar solutions but they do serve different purposes. The main differences are:
Here’s some further information to consider if you are looking into Bankruptcy or a Debt Relief Order.
If you are looking for the best debt solutions, it is crucial that you consider all options before making a decision.
We’d advise you to research all possible solutions, as well as seek debt advice from specialists to make sure that you are making the right decision for you.
Whilst Bankruptcy seems like a quick fix to getting rid of your debts, it does come with its downsides and you must know the risks beforehand.
However, Bankruptcy may be suitable if your debts are greater than £30,000 and you really have no spare income to go towards your debts via other solutions (IVA / DMPs).
Get in touch
Private & Confidential Support
The first step is the hardest but you’re in the right place – talking with one of our friendly assessors can help get the ball rolling.
Explore your options
Debt help without judgment
Talk to us about your situation, and we’ll let you know if an IVA may be a potential solution for you.
No Obligation Service
We can carry out a debt suitability assessment, and if you qualify for an IVA we can help put together an application with you. There’ll be no obligation and we’ll be on hand to answer any questions you may have along the way.
Speak with our advisors
Using details of your current financial situation as well as the debt that you owe, our team will assess whether you are eligible for Bankruptcy.
As this is a last resort, they will first see if there is another Debt Solution that suits you, but if you don’t fit any of the criteria, you will go to the next step in the Bankruptcy process.
Once our experts have concluded that Bankruptcy is the right solution to you, you will then be directed to an online application form or a ‘Petition’ in which you will fill in to appeal for Bankruptcy.
We will be with you every step of the way, making sure you understand every aspect of the process. This Petition will then be sent over to the Insolvency Service for review.
The Insolvency Service
If your application is accepted by the Insolvency Service, then the order will be made and your original lender will be notified that you have declared Bankruptcy.
This is when your repayments will stop, and your lender is not able to contact you until the bankruptcy has ceased.
12 month review
When your Bankruptcy is coming to an end, your financial situation will be reviewed and if it has not improved and you are still not in a position to pay your debt within a reasonable time then the money that you owe, including the Bankruptcy will be eliminated.
Start by finding out if you qualify by answering the below questions
Most debts will be included in your Bankruptcy and ultimately written off. Some of the main ones include:
You must be aware of what debts will not be included in Bankruptcy, as you will still be required to keep up repayments towards these for duration. If not, you may face even further financial issues.
Debts that will not be written off by Bankruptcy include:
Anybody could be made bankrupt.
No, only your most expensive assets will be taken to be sold. However you can keep the essential items you require for everyday living.
Your assets are taken in order to be sold. This money pays for the bankruptcy proceedings and then the rest of the money goes towards your creditors to pay off money from your debts.
Our team of experts help thousands of families get their finances back on track with an IVA.
*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.
Check if you qualify for an IVA