Bankruptcy is the way that you can deal with personal debts which you have no hope of repaying in a reasonable period of time.

If you are declared bankrupt, you will no longer be responsible for paying your debt. You will remain bankrupt for 12 months after which any outstanding debt will be written off. However, bankruptcy is not a magic wand and the proper advice must be taken before deciding to use this solution. 

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 Beat My Debt Forum
• Call us now – speak to one of our advisors in confidence to see if bankruptcy is right for you.

Take the first step to beating your debt NOW – Call us free on 0800 077 6180

The bankruptcy myth

It is an urban myth that if you declare bankruptcy you will lose your home, your possessions and be left with nothing. This situation is just not true. You will be allowed to keep all of your reasonable possessions and often you will be able to stay in your home if there is minimal equity in it.

While you are bankrupt, if you are unable to make any payments to your creditors then you will not have to do so.

Normally after 1 year, you will be discharged from your bankruptcy and your outstanding debt will be written off. You will then be left to continue with your life debt free.

However, if you declare bankruptcy, it does not automatically mean that you will not have to pay back anything.  The Official Receiver will review your personal financial circumstances and where you can afford to make a monthly payment towards your creditors, you will be made to do so for up to 3 years.

In addition, if you are a home owner, your property may be sold by the Official Receiver releasing any equity within it for the benefit of your creditors.