If you are considering Bankruptcy, you should only view it as a last resort. One Advice can offer you free advice and information on other debt solutions such as Debt Management and IVA.
Technically anyone can go bankrupt as long as they owe over £750 to creditors, and creditors can take you to court for as little as this amount. They can do this with or without your permission.
If you have assets, such as a property, then you should think very carefully before starting the bankruptcy proceedings. As Bankruptcy means that your unsecured debt will be cleared, your assets can be sold in order to pay off your creditors.
You also 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.
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, and thus you might find it very difficult (or nearly impossible!) to get accepted for a loan, credit card or mortgage.
One Advice always recommends that you seek out other options before declaring yourself bankrupt. Our specialist insolvency advisors will be able to help, contact us today on 0800 019 5870.
In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted. Always take expert advice from an Insolvency Practitioner.