Bankruptcy
Bankruptcy is something we can help with if appropriate. This is an option that should only be considered in the most extreme circumstances. It is normally suitable for people that have very few assets and have little or no disposable income to send to their creditors. Bankruptcy is something that has to be approved by a court, it is not just something you can do automatically and typically the fees a court requires to set up a bankruptcy are in excess of £450.It should not really be considered if you have assets i.e. equity in a house. Once you have spoken with one of our advisors, they will ascertain whether or not Bankruptcy is suitable, it could be that another product is far more suitable. In most cases things like your bank account will be frozen, as if you have utility supplies set up to be paid by direct debit then these will be cancelled, as well as any mobile phone contracts. It is a process that should not be taken lightly.
Bankruptcy, Advantages and Disadvantages
Advantages: Normally allowed to be discharged after 12 months (although this cannot be guaranteed as it can last up to 15 years).
Bankruptcy allows people with little or no disposable income to have debts written off.
It can lift the stress and hassle if being chased by creditors and debt collectors.
An opportuninty for a fresh start.
Disadvantages: Your bank account will be frozen. Bankruptcy will have an adverse affect on your credit history. You will not be allowed anything on credit (utilities, mobile phones, sky) etc. You may still be required to make a contribution to the debt each month.
ADVANTAGES
- Discharged After 12 months*
- Debts May be Written Off
- Creditors Cease to Chase
- Chance For a Fresh Start
- Bank Account Frozen
- Adverse Affect on Credit History
- No Further Credit Allowed
- May Still Need Monthly Payments
disADVANTAGES
*Discharge period cannot be guaranteed. This may last upto 15 years.