What is Bankruptcy?

Bankruptcy is a legal procedure for those who are in serious debt and cannot keep up their monthly repayments. Bankruptcy should never be seen as an 'easy way' to get out of debt as there are long term implications which are unavoidable and could hinder your professional and financial future.

What Does a Bankruptcy Order do?

A Bankruptcy Order will:

• Free you from escalating debt, giving you a fresh start within 12 months, subject to restrictions.
• Ensure your assets are shared out fairly among your creditors. Although this does mean that you will have to surrender any assets in order to pay off your debts meaning that you could lose your home or your car.

How Do I Declare Bankruptcy?

You could declare bankruptcy either voluntarily by making an application to your local County Court or involuntarily through an application issued by one of your creditors, who is owed more than £750. A bankruptcy order can still be made even if you refuse to acknowledge or agree to the proceedings.

Bankruptcy is NOT the only way to free yourself from unaffordable debt. For free advice and potential alternatives please call one of our expert advisors on 0800 048 1766.

Bankruptcy should be seen as only a last resort, as there are many other alternatives, such as an Individual Voluntary Arrangement or Debt Management.