Contact the Debt Counsellors
The Debt Counsellors

The Debt Counsellors > Bankruptcy > Avoiding Bankruptcy

Avoiding Bankruptcy

Bankruptcy can be a very public experience! The Debt Counsellors will not recommend bankruptcy as a viable solution to your debt problems until we have investigated all other options.

If you would like to avoid bankruptcy, then please get in touch and ask us for alternative solutions to your debt problems.

Why you should be avoiding bankruptcy in the UK

Some of the effects and consequences of being declared bankrupt are:

  • Bankruptcy should not be considered if you have assets of any reasonable value and own your own home, even if there is little or no equity. The new Enterprise Act, which states that certain classifications of bankrupts could be discharged in twelve months, this will happen in relatively few cases.
  • Even after being discharged, bankruptcy can affect the ability to obtain a mortgage or get credit for many years to come.
  • Bankruptcy applications have to be advertised: Your bankruptcy application will be advertised in the London Gazette and may also be advertised in your local press.
  • Notification is made to everyone financially connected: Your bank, building society, creditors, landlord, etc will need to be informed.
  • Bankrupts cannot be in control of a business: Any businesses you have will be disposed of or closed.
  • Any asset that might have been acquired during the term of the bankruptcy, such as inheritances, insurance payouts/maturities, equity in property, windfalls, etc., and possibly pension income may be distributed amongst your creditors.
  • Bank accounts and credit cards may have to be closed. Anything that is being purchased by lease or HP, such as your car, could be returned to their owners.
  • People that have been bankrupt before should be very careful about being made bankrupt again, as the minimum period of bankruptcy is 5 years, and could continue for up to 15 years before being discharged.
  • Some employment situations will be prejudiced by being declared bankrupt and professional and business status can be lost. Membership of many associations and societies can also be lost.

DEBT MANAGEMENT

A debt management plan is an agreed solution with your lenders and we negotiate with your creditors.
do i qualify?

IVA

An IVA is a formal arrangement with your creditors. Once agreed your creditors cannot ask for your agreement to be changed.
do i qualify?

REFINANCING

Refinancing is a way to wrap up all of your credit into one manageable monthly payment.
do i qualify?

TRUST DEED

For our Scottish customers a Trust Deed is your equivalent of an IVA.
do i qualify?

BANKRUPTCY

Bankruptcy is when you legally declare that you cannot pay your debts and a court order is put in place to split your assets amongst your creditors.
do i qualify?

CONTACT

T: 0800 954 8150
Gisborne Close
Staveley, Chesterfield
Derbyshire, S43 3JT

The Debt Counsellors Limited - IVA, Debt Consolidation & Debt Management Specialists
Registered in England and Wales (Company Number 03276827)
Postal Address and Registered Office:
Gisborne Close, Staveley, Chesterfield, Derbyshire, S43 3JT
Consumer Credit License No. 0464223

© 2008 The Debt Counsellors Ltd