If you are considering Bankruptcy, then please only view it as a last resort. One Advice can offer you professional advice and information about other debt solutions such as Debt Management and IVA.
Technically anyone can go bankrupt as long as they owe over £750, and creditors can take you to court for as little as this amount. They can do this with or without your permission. If creditors are taking you to court over bankruptcy, don’t panic as it may still be possible for you to avoid bankruptcy.
Please contact our One Advice bankruptcy advisors for expert bankruptcy advice on 0800 048 1752 or take the 1 Minute Debt Test to see your debt solution options.
If you are having debt problems then you should always consider your options before you declare yourself bankrupt. Bankruptcy has long term implications which you need to consider as you lose financial control and high-value assets can be sold.
Those who declare bankruptcy often have no other alternative and will have tried to deal with their debts through informal debt solutions, such as a debt management plan. Only after all of your alternatives have been exhausted should you consider declaring yourself bankrupt.
Bankruptcy is not the right debt solution for everyone, infact only those who have no or very few assets should see this as the right way to deal with their debt problems.
If you have assets, such as a property, then you should think very carefully before starting the bankruptcy proceedings. Bankruptcy means that your unsecured debt will be cleared but your assets will be sold in order to pay off your creditors.
You lose control of your finances, as any bank accounts and credit cards will be closed. Details about your bankruptcy will be announced in the paper and some job opportunities will be closed to you.
For detailed information about what happens when you declare yourself bankrupt and what this means for you, please see our Declaring Bankruptcy page.
You Bankruptcy Order will usually last for 12 months, unless further restrictions are placed against you. When you have been discharged from Bankruptcy all your debts will be written off and you will be starting from scratch financially. There are certain debts which cannot be written off though, such as student loans.
Your Bankruptcy Order will remain on your credit file for six years, and thus you might find it very difficult (or nearly impossible!) to get accepted for a loan, credit card or mortgage.
One Advice always recommend that you seek out other options before declaring yourself bankrupt. Our specialist insolvency advisors will be able to help, contact us today on 0800 048 1752.