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Initial financial advice, help and guidance
BankruptcyBankruptcy is a legal way of resolving problems with unsecured debt that cannot paid via the courts and the Insolvency Service. An individual can apply to the court or Insolvency Service to become bankrupt, who will assess the application before making a decision. This usually costs £705 although discounts are available for those on low income or benefits. Creditors can also apply to the courts to make an individual bankrupt in the event of deliberate avoidance of payment.
When an individual is declared bankrupt by the Insolvency Service, assets owned such as equity in a property, a vehicle, pension or savings might be used to pay off the debts. If there are any spare funds available each month, they must be paid towards the creditors also. These amounts and the duration of payments will be determined by the courts after assessing the individual's financial circumstances. Usually, after one year all of the outstanding debts are written off and the individual can make a fresh start. However, bankruptcy will affect the credit file for a further six years, and this may have to be declared in future financial or job applications where applicable, as this will legally have to be declared.
When you are drowning in debt and want fresh start in your life, bankruptcy is one option although there are other alternatives to become debt free.
Bankruptcy information is available throughout our website and we will help you every step of the way.
Alternatives to Bankruptcy?
Individual Voluntary Arrangements
Take the 1st step to a debt free life call Free Phone : 0808 22 22 123 or fill in our online enquiry form.
Or click here to take the online eligibility test.