Bankruptcy

Bankruptcy is often the final solution to the problem of debt.

Deciding to file for bankruptcy is a big step, not to be taken lightly. At Debt Solutions, our expert advisors will be happy to offer impartial advice about whether or not Bankruptcy is the right answer for you.

Alternatives to Bankruptcy

A lot of the people that come to Debt Solutions for debt advice are under the impression that bankruptcy is the only debt solution available to resolve their debt problems. But this is not always the case, there are a number of other debt solutions that could help, without going to the extremes of bankruptcy.

Call the debt solutions helpline on: 0845 519 6093

Our expert debt advisors can advise you on the best course of action to tackle your specific debt problems, often allowing you to take advantage of alternatives debt solutions to avoid bankruptcy.

You should carefully consider what bankruptcy involves and what the other alternatives are before you settle on going bankrupt, as there are other debt solutions, like an IVA - Individual Voluntary Agreement or Debt Management Plan.

Bankruptcy Advantages and Disadvantages

What are the advantages of Bankruptcy?

Bankruptcy can write off all of your debt and could leave you totally debt free within 12 months.

Think of it as turning over a new financial leaf and starting again.

If you are currently living in rented accommodation, you'll get to stay where you are.

Your creditors understand that they will end up with less than what you actually owe.

You will no longer have to deal directly with your creditors alone.

You may not loose your home, if there is no equity available.

What are the disadvantages of Bankruptcy?

Your home may well be sold to release the equity that you have tied up in it. So, you might lose your home to help pay off your creditors.

Once your cost of living expenses are deducted from any earnings, the rest could well go towards monthly payments to your creditors that can extend for up to three years. This is called an Income Payments Order, or an IPO.

Bankruptcy can have long lasting implications on your future career plans too. A number of organisations exclude bankrupt or ex-bankrupts from holding positions.

It could do substantial damage to your credit rating, from which it may take you a number of years to recover.

To borrow anything over £ 500, you will have to inform the lender of your bankruptcy.

Bankruptcies are listed in your local newspaper so have that added stigma of your peers finding out.

Not all debts will be written off by bankruptcy. Your student loan, as well as any fines, child support or maintenance and personal injury debt are amongst those debts which are not covered.

Bankruptcy Law

Bankruptcy offers debtors two routes. The first choice is one that debtors themselves opt for, and the second one is an option that the creditors can exercise. Debtors can file for a petition, called a debtor's petition, at the London High Court. This gives relief from financial miseries. Creditors can file a creditor's petition and this affords them an opportunity to recover any debts.

The Official Receiver or an Insolvency Practitioner manages the bankruptcy proceedings, though the IPO should be authorized by the relevant body's Department of Trade and Industry.

Bankruptcy in Scotland

The UK has two main personal insolvency practices: one for England and Wales and there is another one for Scotland. England and Wales mostly have “bankruptcies”, and the remainder fall into Individual Voluntary Arrangements or IVAs.

Scotland's equivalents are Sequestrations, and their Trust Deeds offer much the same as an IVA.

Trust Deeds differ slightly from the English IVA and are only available to Scottish residents but the underlying principles are the same: interest and charges get frozen and unpaid debt is written off at the end of the agreement.

Can debt solutions help me get out of debt?

YES we can. Everyone’s personal situation is different and each debt solution is different so we need to work out which will best suit your financial needs.

We will complete a FREE 20 minute fact find with you to work out what your earning and spending and this will let us know how much you can afford to pay to your creditors and also which debt solution is best for you to help you get out of debt. You are under no obligation but I am sure you will be 100% happy with what out debt advisors can do for you and we have the lowest debt managenent fees in the industy

We pride ourselves in our friendly, professional approach to finding the right debt solution for every one of our clients, which is honest, confidential and always the ‘best advice’ based on your individual circumstances.

If you would like to speak to one of our friendly, professional debt experts about any of our debt solutions you can either call our debt solutions helpline on: 0845 159 6093 or complete our online contact form and one of our debt advisors will call you back within the hour.

Start you debt free life today! with one of our debt solutions.

Debt Management | Individual Voluntary Arrangement | Protected Trust Deed | Bankruptcy

Also have a look at out "DEBT FEEs" chart and see what the more popular debt management companies are charging.