Bankruptcy Services

Bankruptcy

Description
Bankruptcy should be considered as a last resort, when you have no disposable income to pay your creditors. Whilst you are bankrupt any assets that you have might be used to pay off your debts. After a period of time all of your outstanding debts are written off and you can make a fresh start

Eligibility
A creditor can make you bankrupt if you owe £750 or more to that creditor and you have not been able to agree how to repay the debt. You can also be made bankrupt if your individual voluntary arrangement fails.

Pros
Bankruptcy takes the pressure off you as your creditors will not be able to chase you once filed.
All of your debt will be written off providing you with a fresh start.
Any personal or occupational pensions you have should be unaffected

Cons
Your name and address will be published in a local or national paper (or both) as well as the London Gazette.
You lose control of all your assets which includes them being sold to pay your creditors. This is dependant on whether it has any equity (value) in it.
It restricts your ability to obtain credit in the future without permission from the lender and your credit rating can be affected for many years after the annulment.
You cannot become a member of a local authority or parliament, you cannot act as a company director or take part in the formation/management of a limited company (without the permission of the court) and finally you may not practice as a chartered accountant/lawyer and act as a Justice of the Peace.
There may be a clause in any hire purchase agreements that you have to terminate them if you become bankrupt.