While bankruptcy can be the answer for people with serious debt problems, it is the most extreme solution for dealing with debts, going bankrupt should only be considered as a last resort.
This page will provide information regarding Bankruptcy; it can help you decide if Bankruptcy is the option for you.
Bankruptcy has a different process depending on where you live in the UK, it is different in Scotland and Northern Ireland.
Bankruptcy is a legal process that can write off all unsecured debts. Once a bankruptcy order is made against you your financial affairs will be controlled by the Official Receiver/Trustee, your financial situation is made public and your employment may be at risk if you work in some professions.
How does it work?
Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.
A court makes a bankruptcy order only after a bankruptcy petition has been presented. It is usually presented either:
- by yourself (debtor’s petition); or
- by one or more creditors who are owed at least £750 by you and that amount is unsecured (creditor’s petition).
All your assets (except personal effects and pensions) will be realised to pay back your creditors.
Bankruptcy normally lasts for 12 months (but can be extended by between 2 and 15 years in certain circumstances).
You may have to pay the trustee some of your income for up to 3 years. The equity in your house (unless it is very small) will need to be paid to the trustee, who could seek repossession and sale of your home.
Thinking of Going Bankrupt?
Bankruptcy can be the solution to debt problems however it is not the type of decision to be taken lightly and should only be considered as a last resport. If you would like to talk about your options regarding bankruptcy call us on our Freephone number 0800 121 48 63 or call our land line 028 4175 4200.
If you don’t have time to call us now, use our Bankruptcy Help form and we will contact you when it suits you.