Bankruptcy is generally considered
to be the most restrictive and severe of all
the personal debt solutions available today,
although in certain circumstances it can be
the most appropriate. A first bankruptcy will
generally last about a year.
Bankruptcy protects you from your
creditors and releases you from the majority
of your debts (there are some debts that survive
bankruptcy, such as court fines, student loans
and matrimonial debts).
Some people still perceive bankruptcy
to have a stigma attached and the fact that
it is publicly advertised can deter people.
The process to make yourself bankrupt
is quite straightforward and costs a little
under £500.
Bankruptcy should always be the
option of last resort as you will lose control
of any assets of value and possibly a proportion
of your income (for 3 years). Also some jobs
specifically state that you cannot continue
to hold the position if you have been declared
Bankrupt. If you hold such a job it should have
been made clear to you before you accepted the
job that bankruptcy would result in you employment
being terminated. Bankruptcy can also affect
people who hold professional qualifications,
such as accountants, lawyers etc.
Bankruptcy, like any other formal
insolvency procedure adversely affects your
credit rating.
We can advise you on what to
expect in the event of your bankruptcy. We can
also assist with the completion of the relevant
paperwork required to make yourself bankrupt.
