Bankruptcy

If you find yourself in a position where you are unable to cope with your debts, bankruptcy is an option, but should really only be considered if all other options have been exhausted. There are several advantages and disadvantages with bankruptcy, so it is important to weigh these up before taking action.

On a positive note, a bankruptcy order can:

Be completed in as little as one year, at which point the debt is completely cleared
Reduce pressure from creditors
Allow you to keep certain assets such as a reasonable living allowance

However, the disadvantages of bankruptcy include the following:

It will affect your credit rating so it may be more difficult to obtain credit in the future and interest rates may be higher
You cannot be a company director or hold certain elected positions while the bankruptcy is in effect
You could incur a Bankruptcy Restriction Order for up to 15 years
Bankruptcy orders can be published on the internet and in local newspapers
Bankruptcy may not entirely prevent creditors from trying to take customers to court

If you would like to discuss the various available debt solutions, including bankruptcy, fill in the form below and a finance expert will contact you to help you choose the right course of action for you.