Tweet
If you are in serious debt, bankruptcy should be viewed as your last resort. Other debt solutions, such as a DMP or IVA may help solve your debt problem, depending on your situation.
It’s important to realise that when you are made bankrupt, although all your debts will be cleared, your house and all your assets, such as car, valuable furniture, life insurance plans, and unapproved pension schemes could all be sold off to pay your creditors.
Being made bankrupt means your bank accounts and credit cards will be closed. Your bankruptcy will be announced in the newspapers and it can mean other restrictions relating to your work and future ability to obtain financial services. That’s why you should view this option very much as your last resort.
You will normally be discharged from being bankrupt after 12 months. However, you should be aware that this can be extended for as long as 15 years, depending on what restrictions are placed on you by the official receiver.
CAB PDF FACT SHEET - http://www.adviceguide.org.uk/d_bankruptcy.pdf
There are some good forums for advice with Bankruptcy issues around - although you should be careful of those linked to companies offering IVAs etc.
http://forums.moneysavingexpert.com/...lay.html?f=136
A lot of people going through bankruptcy or living with it have posted on this board and it is unbiased. It is a public forum though and we would recommend checking any advice from MSE carefully.
It’s important to realise that when you are made bankrupt, although all your debts will be cleared, your house and all your assets, such as car, valuable furniture, life insurance plans, and unapproved pension schemes could all be sold off to pay your creditors.
Being made bankrupt means your bank accounts and credit cards will be closed. Your bankruptcy will be announced in the newspapers and it can mean other restrictions relating to your work and future ability to obtain financial services. That’s why you should view this option very much as your last resort.
You will normally be discharged from being bankrupt after 12 months. However, you should be aware that this can be extended for as long as 15 years, depending on what restrictions are placed on you by the official receiver.
- Q: Will bankruptcy affect my job?
A: In certain professions, you could run the risk of losing your job. And if you are self-employed, your business will be normally be closed down. You can start to trade again but will be subject to restrictions. You will also be barred from being a company director without court permission.
- Q: How long will bankruptcy remain on my credit file?
A: Six years. If you apply for credit after that time, you may still have to declare that you have been bankrupt
- Q: What if my circumstances change during bankruptcy?
A: You are legally bound to inform your bankruptcy trustees if your income increases at all during your bankruptcy. This includes any money left to you in a Will or a redundancy payment.
- Q: What do I do after filing my petition for bankruptcy?
A: The Official Receiver will initially take over once a bankruptcy order has been made and handle all aspects of your bankruptcy, including liaising with your creditors. You will be under a legal obligation to co-operate fully with him or her.
- Q: What if my combined assets are still not enough to pay off all my debts?
A: Declaring personal bankruptcy will still clear all your debts and protect you from your creditors. Even so, it should only be seen as the very last resort.
CAB PDF FACT SHEET - http://www.adviceguide.org.uk/d_bankruptcy.pdf
There are some good forums for advice with Bankruptcy issues around - although you should be careful of those linked to companies offering IVAs etc.
http://forums.moneysavingexpert.com/...lay.html?f=136
A lot of people going through bankruptcy or living with it have posted on this board and it is unbiased. It is a public forum though and we would recommend checking any advice from MSE carefully.
