Bankruptcy

• About Bankruptcy
• Avoiding Bankruptcy
• Bankruptcy Facts
• Declaring Yourself Bankrupt
• Bankrupt In The Uk
• Bankruptcy Insolvency
• Voluntary Bankruptcy
• File For Bankruptcy
• Bankruptcy Laws
• Banktuptcy Questions
• Receivership Definitions
• How To File For 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.