Bankruptcy is fast becoming a real solution to many thousands of ordinary people facing serious consumer debt problems in the UK today. Many people who have no or very little disposable income to pay to creditors are turning towards Bankruptcy to solve their debt problems.
The bankruptcy team will see if you qualify for Bankruptcy and advise you how much of your debt you can clear with bankruptcy. We usually advise bankruptcy as a final resort to resolving debt problems. If all the other debt solutions aren't viable then bankruptcy could be your only solution.
What happens when you become Bankrupt?
- In the long term - Most if not all your unsecured debts will be written off leaving you with debts that could not be included in the bankruptcy (secured debts, non-provable, student loans and benefit overpayments) or none at all.
- The short term - Stops Debt and bill collectors harassing you for money from debts included in the bankruptcy.
- Your Job - Most of those with livelihoods would not be affected by being protected by Bankruptcy, unless your hold any government positions. It is always best to consult a professional bankruptcy advisor over this.
Declaring yourself bankrupt isn't as straightforward as it may seem. There will be restrictions imposed on yourself once you have been made bankrupt by your local county court which usually last for 12 months from the date your court made you bankrupt.
The steps to Bankruptcy
- Once you have filled out the online application we will then send your details onto our professional debt company partner, who will contact you and assess your details.
- If they still feel that it is the right choice for you to make they will show you how to complete the online bankruptcy application via the gov.uk website. The bankruptcy application process has been simplified as of April 2016 so all applications can now be made online. You will be required to pay a fee of £655 to go bankrupt which can be made over 6 monthly instalments.
- Once your bankruptcy application and an adjudicator has made you bankrupt, you will receive a copy of your bankruptcy order and you may be interviewed about your situation
- After you are made Bankrupt you are usually discharged from bankruptcy. The adjudicator will have the task of ascertaining if you have any monies to pay in your Bankruptcy Order, They will be looking to see if you have any assets in Bankruptcy, such as your property, that can be sold to raise money towards paying your creditors. If you have a monthly disposable income after taking into account your essential living costs for you and your family you could be asked to pay a monthly income payments order also.
Am I eligible?
- You have little or no money to repay your debts.
- Your unsecured debt is greater than £5,000?
- Your have no assets that can be used to repay your debts
Key Facts about Bankruptcy
- You will not be able to act as a company director
- You will not be able to manage another business without telling you business associates that you have been made bankrupt
- You will not be able to obtain credit greater than £500 without explaining that you have been made bankrupt
- You will not be able to hold many forms of government positions
- Certain positions such as working in a bank stipulate within their contracts you are not allowed to hold that position whilst being made bankrupt
- Once you have been made bankrupt, you will find your credit rating will be seriously affected and your ability to obtain future credit will be difficult and potentially more expensive.