Bankruptcy

Bankruptcy is an option that is often considered when your liabilities far outweigh your assets and you have no possible means to pay off your debt.

Bankruptcy frees you from overwhelming debts so you can make a fresh start, subject to some restrictions. However, as part of the proceedings, your assets will be seized and sold and the amount raised will be distributed fairly among your creditors. A first time bankrupt will generally be discharged from bankruptcy within one year or even less.

How Bankruptcy works?

Bankruptcy is just one of the several debt solutions you can consider for dealing with your debts. An IVA (Individual Voluntary Arrangement) is a better alternative to bankruptcy.

If you have debts of £15,000 or more and a regular disposable income of £200 per month, a debt management company can set up an IVA with your creditors.

The company can negotiate with your creditors to freeze all further charges and interest and bring down the amount of debt to an amount that you can pay on monthly basis over a five year period.

At the end of the five years, you will be declared debt free and any remaining unsecured debt you have will be written off.

To learn more about bankruptcy and other debt solutions call our advisors on 0800 9546 205. Alternatively, request a call back and we'll advise which debt solution is best suited to permanently address your debts.

(Calls from mobiles and other networks to 0800 numbers may incur a charge. When you speak to us about your debt problem, ask us to call you back so that you do not have to pay for the call)

Implications of Bankruptcy

Bankruptcy has very serious and long-lasting consequences, some of which are:

  • You lose control over your assets and property.
  • You cannot act as a director of a company.
  • You cannot participate, form or manage a limited company without the prior permission of the court.
  • You cannot obtain credit for over £250 without the permission from the official receiver.
  • You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
  • Your credit rating is affected for many years after the annulment.
  • You may be publicly examined in court.
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What our customers say?

My debts spiralled from University, gradually became unmanageable. They saved my life. I now have no overdraft and am able to afford my lower monthly payments.

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If you would like more information talk to our team today

Speak to a debt advisor on:

0800 9546 205

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