What Is Bankruptcy?
Bankruptcy is a financial arrangement where debt is discharged and is generally considered a last resort for people who have no alternative debt solution.
Generally bankruptcy occurs when there are both secured and unsecured debts and no means to repay them, otherwise there are usually debt solutions such as the debt management plan and the IVA.
We strongly recommend before entering into bankruptcy we carry out a debt assessment for you to find out if you qualify for the other debt solutions first.
This is to protect your assets, your credit rating and to avoid some of the unpleasant pitfalls that go along with bankruptcy.
Advantages & Disadvantages of Personal Bankruptcy
- Once the bankruptcy period is completed all debts are written off in their entirety and there is no further debt liability.
- Anyone living in rented accommodation will be able to continue paying debt.
- It may be possible to become debt free in the space of 1 year, however your credit rating will be heavily affected.
- Job may be placed at risk, certain employers will release staff whom are bankrupt or not consider employing them.
- You will not be eligible for any amount of credit above £500 unless you first disclose the fact you are bankrupt
- Bank accounts and credit cards will be closed and stopped.
- Bankruptcy will be placed on the public insolvency register and placed in the London gazette.
- Any surplus income goes to creditors
- The bankruptcy will remain on your credit file for a minimum of six years
How Do I Know If I Qualify For Bankruptcy?
There is no official criteria to qualify except to be in debt that you cannot repay.
Find out more?
Get in in touch with us to find out more about bankruptcy and get a free debt assessment to see if you qualify or potentially wish to consider other forms of debt relief.
Do you have more than one debt and need a solution?
- Enter a few simple details
- Choose help online or by phone
- Get your personalised debt solution!
What's your approximate level of debt?
What is your residential status?
How many lenders do you owe money to?
What's your employment status?
What's your average monthly income after tax?
Do you have any assets worth over £1,000?
Please select a contact method
Please enter your details and preferred contact time below to arrange a call-back.
One of our friendly advisers will be in touch to talk about your situation and give you a range of suitable debt solutions to choose from
Please enter your details below so you can access PlanFinder, our secure online debt solution tool.
It will take about 15 minutes to complete, and we’ll contact you at the end with the debt solutions available to you.
Please enter your details below to chat to an adviser via WhatsApp.
We’ll add your phone number to our system and the next available adviser will get in touch to help you – please look out for our message on WhatsApp!
Please enter your details below to chat to an adviser via email.
The next available adviser will be in touch to ask a few more questions about your situation and provide you with the debt solutions available to you.