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What are the advantages of going bankrupt ?
• Pressure is taken off you because you don't have to deal with your creditors
• You are allowed to keep certain things, like household goods and a reasonable amount to live on
• When the bankruptcy order is over, you can make a fresh start. In many cases, this can be after only one year
• Creditors have to stop most types of court action to get their money back following a bankruptcy order (but in some cases the bailiffs may still be able to take your belongings away)
• The money you owe can usually be written off.
What are the disadvantages of going bankrupt ?
• It will cost you up to £485 to go bankrupt ( sometimes more, for example if you use a solicitor )
• Whilst you are bankrupt, you can't apply for more credit
• If you own your own home, it might have to be sold (but you may be able to apply to your local authority for re-housing)
• Some of your possessions might have to be sold, for example, you will usually lose your car and any luxury items you own
• Some professions don't let people who have been made bankrupt carry on working
• If you own a business, it is more than likely that the Official Receiver will close down your business, dismiss your employees and sell off the assets
• Going bankrupt can affect your immigration status
• You cannot keep your bankruptcy private. A list of bankrupt people is published on the internet and your case could also be published in your local newspaper
• Even when you are no longer bankrupt, you could have another order, called a bankruptcy restriction order made against you. These orders can be made, for example, where you did not co-operate with the Official Receiver, or you took on debts knowing that you had no hope of paying them back. They can last for 15 years, and will make your financial affairs very restricted.
• Even when you are no longer bankrupt, there are some debts such as court fines and student loans that will never be written off.
from
http://www.adviceguide.org.uk/d_bankruptcy.pdf
• Pressure is taken off you because you don't have to deal with your creditors
• You are allowed to keep certain things, like household goods and a reasonable amount to live on
• When the bankruptcy order is over, you can make a fresh start. In many cases, this can be after only one year
• Creditors have to stop most types of court action to get their money back following a bankruptcy order (but in some cases the bailiffs may still be able to take your belongings away)
• The money you owe can usually be written off.
What are the disadvantages of going bankrupt ?
• It will cost you up to £485 to go bankrupt ( sometimes more, for example if you use a solicitor )
• Whilst you are bankrupt, you can't apply for more credit
• If you own your own home, it might have to be sold (but you may be able to apply to your local authority for re-housing)
• Some of your possessions might have to be sold, for example, you will usually lose your car and any luxury items you own
• Some professions don't let people who have been made bankrupt carry on working
• If you own a business, it is more than likely that the Official Receiver will close down your business, dismiss your employees and sell off the assets
• Going bankrupt can affect your immigration status
• You cannot keep your bankruptcy private. A list of bankrupt people is published on the internet and your case could also be published in your local newspaper
• Even when you are no longer bankrupt, you could have another order, called a bankruptcy restriction order made against you. These orders can be made, for example, where you did not co-operate with the Official Receiver, or you took on debts knowing that you had no hope of paying them back. They can last for 15 years, and will make your financial affairs very restricted.
• Even when you are no longer bankrupt, there are some debts such as court fines and student loans that will never be written off.
from
http://www.adviceguide.org.uk/d_bankruptcy.pdf
