Helping you get out of debt through Bankruptcy

What you need to know about
Bankruptcy

Often considered as the last resort and the most serious of all personal debt solutions, Bankruptcy allows you to reset your financial situation and start afresh.
Bankruptcy is a form of personal insolvency and is a suitable solution when you are unable to repay anything towards your debts and have little or no assets.

You can choose to declare yourself bankrupt but in some cases one of more of the companies you owe money can apply to make you bankrupt, even if you don’t want them to. For a creditor to make you bankrupt, you must owe a minimum of £5,000.

Being declared bankrupt usually involves selling items that are of high value, such as your house or car, to raise money to pay off your debts. You may also be required to make a monthly payment towards your debts if you earn enough.

Once your application for Bankruptcy has been approved, your creditors are no longer allowed to contact you or try to take further legal action against you in order to get the debt repaid. A Bankruptcy typically lasts for a year and at the end of the 12 months any remaining debt is written off.

Are you eligible?

To qualify for an Bankruptcy, you must:

Have more £5,000 of unsecured debt

Unable to repay all your debts

Live in England, Wales or Northern Ireland

Benefits of Bankruptcy

Start afresh with your finances
Usually free of unsecured debt after 12months
No more harassment from creditors
Debts in joint names can be included in one bankruptcy

Considerations

If you’re a homeowner, you could be required to sell your home to pay towards your debts
Your details will be recorded on the insolvency register, which is public
Bankruptcy will appear on your credit file for 6 years and your rating will be affected
Fees: A fee of £680 applies but some people could qualify for help with these fees