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Bankruptcy

Did you know that your unsecured debts
could be cleared with Bankruptcy

Free from Unsecured Debt in typically 12 months

Write off all the unsecured debt you can’t afford

Put an end to unsecured creditor phone calls and letters

Restrictions last until you are discharged from Bankruptcy, which is usually 12 months from the date the court made you bankrupt.

Debts included in your bankruptcy will be written off. Certain debts cannot be included in bankruptcy such as student loans, secured debts, child support, fines, penalties and some tax debts.

Once the bankruptcy order has been made, your creditors may not pursue you for your debts.

Bankruptcy

If you have very large debts you might want to consider the Bankruptcy option.

We can guide you through the requirements for Bankruptcy which can help clear any debts eligible to be included in Bankruptcy

If you have little or no disposable income to pay your creditors then Bankruptcy is likely to be your only viable option. However, part of our Bankruptcy service is that all of the other repayment options available to you are checked before you commit to declaring yourself Bankrupt. We can guide you through the entire bankruptcy process from start to finish and asses your financial circumstances to see if bankruptcy is the correct solution for you.


Starting your Bankruptcy Application

Your Circumstances

A Bankruptcy advisor will conduct a review of the information you have provided to us via the Online Application

The Right Choice

From your review they can determine if Bankruptcy is the solution for you. If so, our partners Consolidators Ltd will be able to show you how to start the online bankruptcy application and the costs involved.

Online Application

As of April 2016, the government has made some important changes to the bankruptcy application process and fees. You can now make an online bankruptcy application via the gov.uk website and an adjudicator will then asses your application.

What's Next?

After becoming Bankrupt by your adjudicator, you will receive a copy of your bankruptcy order and may be interviewed about your current circumstances. You will have to adhere to certain bankruptcy restrictions as outlined below.


Advantages

Simpler Bankruptcy Application

Advantage

The online bankruptcy application form makes it simpler to go bankrupt

Start a fresh

Advantage

Once your bankruptcy order is complete then you are free to make a fresh start (unsecured debts only).

Unsecured debts written off

Advantage

All your unsecured debts will be written off once your bankruptcy order is complete.

Stop creditors calling

Advantage

Your creditors will not be allowed to chase you for money once you petition for bankruptcy.


Disadvantages

Your credit rating

Disadvantage

Your credit rating will be affected and you will struggle to obtain credit in the future.

Unsecured debts only

Disadvantage

Only unsecured debts can be included in Bankruptcy. Secured debts will remain for you to continue repaying.

Full disclosure

Disadvantage

Your details will be listed on the insolvency register which is accessible via the internet.

Your profession

Disadvantage

Some jobs stipulate you cannot retain your current position after going bankrupt. This is something you can check in your employment contact.


Bankruptcy Restrictions

Before you consider going bankrupt you must read through this section and ensure you understand the bankruptcy restrictions imposed. The bankruptcy restrictions will last for 12 months once you have been made bankrupt.

  • You will asked to sell or downgrade any sizeable assets (such as a car, house or savings)
  • You will not be able to act as a company director
  • You will not be able to trade in any business unless you inform all the people beforehand that you have been made bankrupt
  • You will not be able to obtain credit over £500 without declaring that you are bankrupt
  • You will not be able to continue or partake in certain professions
  • Your credit rating will be seriously affected

Can I still keep my home?

Provided you are not a homeowner or have no equity in your property then you may not be required to remortgage or move out of your property. Equity is considered an asset and will be either asked to be used to pay off your debts or used to help pay into your bankruptcy.

Other essential living items such as your cooker, television or car will not be touched so long as they are not deemed excessive in which case you would be asked to sell or downgrade those items.


What Bankruptcy Services we offer

Debt Advice Online Bankruptcy Service was set up to deal specifically with cases of serious debt that require immediate help. Our partners Consolidators Ltd can advise both on avoiding and declaring Bankruptcy and also how to get an annulment to an existing Bankruptcy Order.

You will benefit from one to one help from a professional Bankruptcy Advisor, and once you do, they will use their expertise to help guide you through the various options open to you.

Typical bankruptcy fees are around £655. This fee can be paid via instalments over 6 months if you are unable to pay the fee upfront

They will offer you confidential advice as to which solution is best for you. You can then make an informed decision about how to get your finances back on track.

Debt Relief Orders

If you have unsecured debts under £15,000 then you may want to consider a Debt Relief Order (DRO) though there is a strict qualifying criteria

  • The applicant is unable to pay their debts;
  • The applicant’s total unsecured debts must not exceed £15,000;
  • The applicant’s total gross assets must not exceed £300;
  • The applicant’s disposable income, following deduction of normal household expenses, must not exceed £50 per month.

An advisor will explain this option to you in more detail if you feel this is a good solution for your debt problems.


Avoid Declaring Bankruptcy

Increasingly, many individuals see Bankruptcy as a simple solution to remove severe debt problems. However, there are often longer term financial consequences which may not be foreseen. Our selected debt company partner can advise you of these and other constraints that occur if you choose to declare yourself Bankrupt.

In our years of experience we find that many clients see an IVA as a more suitable solution to their debt problems because it can help them avoid Bankruptcy. An IVA provides much of the relief provided by bankruptcy doesn't offer as many restrictions.

To get more information about Bankruptcy or to learn how we can help you is to simply contact us today.