Bankruptcy

What is bankruptcy?

Bankruptcy is available to residents of England, Wales and Northern Ireland only.

Bankruptcy is a last resort and should only be advised once every other option has been reviewed.

If Bankruptcy is your best option we can advise you on how to proceed.

Advantages

1.         Your creditors will no longer be able to pursue you or take legal action to recover the outstanding debts.

2.         You will not have to make any further payments to your creditors, but you will have to pay any surplus income over to your Trustee.

3.         All of your outstanding debt will be written off, providing you with a fresh start.

4.         Income from benefits and pensions will be yours to keep.

5.         You can expect to be discharged from your Bankruptcy after 1 year and you will then be debt free.

Disadvantages

1.         If you have any valuable assets, these will usually have to be sold.

2.         Bankruptcy restricts your ability to obtain credit in the future, without the lenders permission. Your credit rating will be affected for many years.

3.         You are banned from setting up or being involved in the day to day running of a limited company.

4.         You are unable to act as a member of parliament.  Restrictions also apply to you being a member of any local council or school boards etc.

5.         You cannot practice as a chartered accountant/lawyer or act as a Justice of the Peace.

6.         Hire purchase agreements may be terminated automatically if you become bankrupt.

7.         You will have to pay a fee with your Bankruptcy application.

8.         Your Bankruptcy will be advertised in your local paper.