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Before you declare yourself bankrupt, you need to be fully aware of both the advantages and disadvantages of this kind of debt management solution. To understand more about these, please view the video and see the information listed below:
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Call 0800 077 6180 for Advice
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Where to start
• Choose the solution – Use the “Which way should I turn” form to get your FREE DEBT REPORT
• Ask the experts – use the Bankruptcy Forum
• Read expert articles about Bankrutpcy
• Call us now – speak to one of our advisors in confidence to see if bankruptcy can work for you.
Take the first step to beating your debt NOW – Call us on 0800 077 6180
THE ADVANTAGES OF BANKRUPTCY
1. Debt Written Off
When you are declared bankrupt, the responsibility for paying your unsecured debts will be taken away from you. After you are discharged which will normally be after 12 months, any outstanding unsecured is written off and you can resume you life debt free.
2. Lasts just 12 months
You will normally be Bankrupt for just 12 months. After that period you will be discharged and free from the restrictions of bankruptcy.
3. Pay nothing unless you can afford to do so
If you have no or very little disposable income, you will not be expected to pay anything from your monthly income towards your debt. If you can afford to do so, you will have to make monthly payments towards your debt for 3 years. However, after these payments are completed, any outstanding debt will be written off by law.
4. Keep reasonable assets
If you declare bankruptcy, you will be allowed to keep reasonable household items. You will not have to give up reasonable goods such as your washing machine, fridge freezer, television and DVD player.
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FROM BEAT MY DEBT NEWS...
01 February 2012 -
Can I include an HP debt in an IVA?
THE DISADVANTAGES OF BANKRUPTCY
Although the advantages of bankruptcy are significant, undertaking bankruptcy is a serious matter. As such, there are some things that you must bear in mind when thinking about bankruptcy
1. Bankruptcy is Public
If you are declared bankrupt, your name will be entered onto the insolvency register. This is a list of everyone who is declared bankrupt or enters into an IVA. This register is publically accessable via the internet (see useful links below).
The rules regarding the publisising of bankruptcy orders was changed in 2009. Now, unless you are self employed it is unlikely that your name and address will be published in the local newspaper. As such, locally based friends, colleagues and business are unlikely to find out about your bankruptcy unless they do a search of your name on the insolvency register.
2. Credit Rating Effected
The record of your bankruptcy remains on your credit file for 6 years meaning it will be difficult to obtain further credit during this time. However, in reality many people are able to borrow again after 12 months or so of being discharged from their bankruptcy.
3. Property May be Sold
If you have equity
in your property, you will have to give this to the Official Receiver. This may result in the sale of your house unless a friend or family member can raise a similar sum on your behalf which can be given to the Court in lieu of your equity.
4. An Expensive car may have to be sold
You may have to trade in a car worth more than £1500. If your car is worth more than £1500, you may be able to keep it if a friend or family member can raise a sum similar to the differece between the value of the car and £1500. This can then be given to the court in lieu of the equity within the car.
5. Unable to work as a company director
You will be unable to act as a company director or be involved with the management of a limited company while you are bankrupt.
More Information: Expert articles
To read articles about bankruptcy arrangements written by our experts please click on the expert articles and news link in the "Useful Links" box below.
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