BankruptcyBankruptcy 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
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.