There are lots of different factors to consider when giving the best debt advice, including how much you owe and to how many creditors, whether you own a home, what type of debt it is (eg. secured or unsecured) and much more.
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
We have tried to lay out in the most clear and concise manner when each kind of debt solution is most appropriate, what the advantages and disadvantages are, and how they work. We strongly recommend that you contact our experienced Debt Counsellors for expert debt advice before you make any decisions though, it's a free service and you can get in touch for free as well!
Debt Advice 
The debt solutions that are
available include:
available include:
Bankruptcy Advice
If you are considering declaring yourself bankrupt that is a very drastic step to take and it might be that there are better options available. You are strongly advised to contact DebtAdvice.net to get free debt advice, as we might be able to find a better option for you.The main benefit of going bankrupt is that all of your unsecured debt is written off, however there is a price for that as your assets can be sold with the proceeds going to your creditors. It can also have serious effects on your job and your ability to get credit in the future.
Sometimes this is the most appropriate course of action, if your debts are particularly large and unmanageable, but again it's best to get expert advice on debt before you petition for Bankruptcy.
SUITABLE?
Is Bankruptcy Appropriate For You?
Not everyone is eligible to go bankrupt. The basic definition of Bankruptcy is that you owe more in unsecured debts than your assets are worth.
Even if that is the case however, if your income is such that you can afford to a reduced amount to your creditors rather than writing off the debt then that will probably be the better option. For example, an IVA will allow you to do that.
For more information about whether Bankruptcy would be appropriate in your situation contact us for free debt advice.
Not everyone is eligible to go bankrupt. The basic definition of Bankruptcy is that you owe more in unsecured debts than your assets are worth.
Even if that is the case however, if your income is such that you can afford to a reduced amount to your creditors rather than writing off the debt then that will probably be the better option. For example, an IVA will allow you to do that.
For more information about whether Bankruptcy would be appropriate in your situation contact us for free debt advice.
HOW WORK?
How Does Bankruptcy Work?
If you wish to declare yourself bankrupt you will have to petition the court to do so. Once you have done that, the following steps will be taken:
A court officer known as an Official Receiver will be appointed in order to investigate your finances to make sure you are eligible,
If you're not eligible the petition will be dismissed, if you are then it will be granted. It is also possible that an Insolvency Practitioner will be appointed if the court feels that an IVA would be a better solution.
In England and Wales you will have to pay £725 to go bankrupt (£175 court fee and £525 Official Receiver fee). If you are on benefits for low income then the court fee may be waived.
The Official Receiver can ask you to sell your assets in order to pay your creditors. This includes everything from cars and homes to life insurance plans. You will be left with enough to live on however.
After 12 months your Bankruptcy will come to an end, however it will stay on your credit reference file for a further 6 years.
If you wish to declare yourself bankrupt you will have to petition the court to do so. Once you have done that, the following steps will be taken:
A court officer known as an Official Receiver will be appointed in order to investigate your finances to make sure you are eligible, If you're not eligible the petition will be dismissed, if you are then it will be granted. It is also possible that an Insolvency Practitioner will be appointed if the court feels that an IVA would be a better solution. In England and Wales you will have to pay £725 to go bankrupt (£175 court fee and £525 Official Receiver fee). If you are on benefits for low income then the court fee may be waived. The Official Receiver can ask you to sell your assets in order to pay your creditors. This includes everything from cars and homes to life insurance plans. You will be left with enough to live on however. After 12 months your Bankruptcy will come to an end, however it will stay on your credit reference file for a further 6 years.EFFECTS?
What are the Effects of Bankruptcy?
The reason why declaring yourself bankrupt is such a big decision to make is because of the wide ranging effects that it can have. It can affect:
Your job – You will not be able to be a director of a limited company, head a public body or run a charity. If you work in the financial services industry or are a member of a professional body then your job could be affected as well. Find out more by contacting us for debt advice.
Your home – If you are renting your home then there may be a clause which states that you have to move out if you declare yourself bankrupt. If you own a home and have equity in it then you may be forced to sell, however you will be allowed to keep enough money to purchase a cheaper property.
Your car – You might be asked to sell your car, although if you do need one then you will be allowed enough money to buy a cheaper model (unless your current car is already inexpensive). If you have your car on finance then that will probably be ended and you will have to return the car.
ñ Your bank account – You may not be able to stay with your current bank once you have been declared bankrupt, and any bank accounts you do have are likely to be restrictive.
Your credit – You will not be able to borrow more than £500 without telling the lender that you are bankrupt. After the 12 months of Bankruptcy has ended, it will remain on your file for another 5 years which will make it difficult to get credit during that time.
If you would like more detailed information on how Bankruptcy is likely to affect you in your particular situation then get in touch for free and impartial debt advice.
The reason why declaring yourself bankrupt is such a big decision to make is because of the wide ranging effects that it can have. It can affect:
Your job – You will not be able to be a director of a limited company, head a public body or run a charity. If you work in the financial services industry or are a member of a professional body then your job could be affected as well. Find out more by contacting us for debt advice. Your home – If you are renting your home then there may be a clause which states that you have to move out if you declare yourself bankrupt. If you own a home and have equity in it then you may be forced to sell, however you will be allowed to keep enough money to purchase a cheaper property. Your car – You might be asked to sell your car, although if you do need one then you will be allowed enough money to buy a cheaper model (unless your current car is already inexpensive). If you have your car on finance then that will probably be ended and you will have to return the car.ñ Your bank account – You may not be able to stay with your current bank once you have been declared bankrupt, and any bank accounts you do have are likely to be restrictive.
Your credit – You will not be able to borrow more than £500 without telling the lender that you are bankrupt. After the 12 months of Bankruptcy has ended, it will remain on your file for another 5 years which will make it difficult to get credit during that time.If you would like more detailed information on how Bankruptcy is likely to affect you in your particular situation then get in touch for free and impartial debt advice.
ADVANTAGES
What are the Advantages of Bankruptcy?
All of your unsecured debt is written off,
You will get a fresh start.
All of your unsecured debt is written off, You will get a fresh start.DISADVANTAGES
What are the Disadvantages of Bankruptcy?
Your assets could be sold,
You will have a bad credit rating for at least 6 years,
There could be negative consequences on your job,
You will be put on the public register as bankrupt, and the information could also be printed in the local paper.
Your assets could be sold, You will have a bad credit rating for at least 6 years, There could be negative consequences on your job, You will be put on the public register as bankrupt, and the information could also be printed in the local paper.Contact Us
Going bankrupt is a huge decision to make and it is recommended that you talk to one of our experts before making the petition. We may be able to work out a more favourable debt solution for you. We are also available if you would like more general debt advice.