Bankruptcy – Pros and Cons – FAQs – Alternatives to Bankruptcy

Bankruptcy is used as a last resort to resolving debt problems and needs to be considered seriously before deciding it’s the right solution for you.

For some people, it’s the right option because it is a relatively quick process lasting for typically 12 months, and it writes off your debts leaving you debt-free. However, there are consequences to bankruptcy which can affect your financial situation and work life in the future, so before you act, it is always advisable to find out as much as you can about bankruptcy and seek alternative solutions to your debt problems first, like an IVA (Individual Voluntary Arrangement), for example.

With bankruptcy, your financial affairs and property will be put into the hands of the Official Receiver, who will also take control of your assets. These will be sold to raise as much money as possible to pay your creditors, and then, after twelve months, you will be debt-free and can make a fresh start.

Our friendly advisors can give you more information about whether Bankruptcy is right for you. Call today on 0800 690 6853..

BANKRUPTCY PROs and CONs

PROs

• Once discharged all of your debts are written off
• Leaves you debt-free typically within twelve months and gives you a fresh financial start
• A solution for serious debt problems
• Your creditors will have to accept less money than is owed and creditor contact will cease.

CONs

• Your assets are sold to pay your creditors
• If you own a home, it will probably need to be sold
• Bankruptcy has serious consequences regarding your work and finances so an IVA should be considered first
• If you have a Disposable Income you will be tied to an IPO (income Payments Order) for 3-years

BANKRUPTCY FAQs

Is bankruptcy the only option available to me?

How long before I’m debt-free?

Will I lose my home?

Will bankruptcy affect my work?

Is bankruptcy a private matter?

How do I go bankrupt?

Our initial advice is free of charge, however should you decide to use our bankruptcy service then fees will apply - please click here for more information.

To find out more about whether an bankruptcy is the right debt solution for you, talk to one of our friendly advisors today on 0800 690 6853.