Bankruptcy Advantages and Disadvantages

If you are struggling with debt then you may be wondering about what solutions there are for you. Bankruptcy is an option for insolvent debtors but you should think carefully about the bankruptcy advantages and disadvantages, and be aware that there could be a better suited bankruptcy alternative for you, such as an IVA.

One Advice can offer you specialist bankruptcy advice and inform you of the advantages and disadvantages of bankruptcy. If you are suitable for bankruptcy, then we have a dedicated Bankruptcy Service which will help you through every step of the bankruptcy process, from filling in the court documents to getting a new bankruptcy bank account.

Advantages of Bankruptcy

• You will no longer have to deal with creditors or debt collection agencies.
• You will be allowed to keep some basic possessions and assets. This could include your car but you may have to swap it for a less expensive model.
• You can start to rebuild your credit rating, although this could take years as your bankruptcy order will show on your credit file.
• Creditors may have to accept less than the full amount of the balance.
• Once the Bankruptcy Order has finished you will be free of the debt.

Disadvantages of Bankruptcy

• Bankruptcy is a public process so your details will be published in your local newspaper, available online and in court records.
• You will lose all financial control and will have to give up your credit cards.
• It will be almost impossible for you to be accepted for any types of credit when bankruptcy is on your credit file, this includes mortgages and personal loans.
• Not all debt can be written off by bankruptcy, such as some student loans and debt which occurred through fraud.
• Any business that you own is likely to be automatically closed.
• Certain careers are closed to bankrupts.

For further information about the advantages and disadvantages of bankruptcy, please contact our bankruptcy team on 0800 048 1752.