In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted.
Bankruptcy is a very public process and converts your possessions and disposable income into cash to repay some or all of your outstanding credit commitments to your creditors.
This section should offer you an overview of the Bankruptcy process. If you have any questions regarding bankruptcy, please see the One Advice Bankruptcy FAQs section or contact our advisors on 0800 048 1752 who can offer you expert bankruptcy advice.
Bankruptcy should be seen as a last resort for those who find themselves insolvent, which means they cannot afford to pay back their debts.
A Bankruptcy Order can be filed by either the individual or the lender at a county court. An Official Receiver is appointed to find out details of the debt and how it occurred, which will take place through a course of meetings where the debtor must provide information about their debt as well their assets.
The outcome of the Bankruptcy Order is often a combination of the bankruptcy period lasting between 12 - 36 months, lump sums to be made to the creditor (which will be done through selling the debtors assets) and monthly contributions from income.
Details about your Bankruptcy Order are published in national and local newspapers, and recorded on the Insolvency Register and with the Credit Reference Agencies. During the bankruptcy period you may find that you are subject to harsh restrictions, such as all bank accounts being closed.
It is important to remember that there are other alternatives to bankruptcy. IVAs were introduced by the Government so that people could avoid having to declare themselves bankrupt.
If you find yourself in serious financial difficulties and want further bankruptcy advice, please give One Advice a call on 0800 048 1752 and let one of our specialist bankruptcy advisors help you through this stressful time.
One Advice are committed to giving you reliable information about bankruptcy and whether this is the best options for you. Online we have the Bankruptcy Advice Guide which offers you a portal of bankruptcy information, but please do not hesitate to contact us directly. We have a dedicated Bankruptcy Service and can offer you free advice about bankruptcy.
If you are unsure of your options and want to avoid Bankruptcy, take the One Advice One Minute Debt Test to see your debt solution options.