Ditch my Debt

Bankruptcy

Bankruptcy is a good option for very unmanageable debts.

• With immediate effect all of your creditors will stop contacting you.
• Solution to clear all of your debts within 12 months.
• Legally binding option to write off the debt you can't afford.

If you feel your debt is out if control and can see no way of repaying it then it may be worth looking at the option of Bankruptcy. Burgess Bowen can assist you with this and ease the burden of completing the necessary paperwork.

What is Bankruptcy?

Bankruptcy is the legal process of declaring yourself as unable to repay your debts. This is done via a court hearing and an Official Receiver or Insolvency Practitioner (someone who is licensed under the Consumer Credit Act to deal with issues of debt) will need to be used to assess your assets. You will be required to pay into a Bankruptcy order for twelve months, this can sometimes be up to three years in certain circumstances. After this time you will be discharged from Bankruptcy and any outstanding debt is written off.

Is Bankruptcy right for me?

A bankruptcy order will prevent your debt increasing and will technically give you a fresh start regarding your debts. Any assets you have will be distributed amongst your creditors, such as home, car or monies. Bankruptcy is generally a preferred option if have few or no assets or a large amount of debt. Any individual or business can be declared bankrupt. If you wish to declare yourself bankrupt then you will be required to present your case to a local court who will then issue the bankruptcy order. To quality you must be a UK citizen and have incurred debts of more then £750.00 within the UK. You will also be liable for court costs but may receive a reduction if you claim certain benefits. Your creditors are also entitled to take you to court to declare you bankrupt for debts over £750.00.

What are the benefits of Bankruptcy?

The benefits of Bankruptcy are that your debts are usually written off within twelve months. In some circumstances you may be required to pay into Bankruptcy order for a further three years if bound so by the court but repayments typically are made for twelve months only. Creditors must accept the order and so accept they will receive a lesser amount than they are owed. This prevents them from contacting you to recover the debt as this will be dealt with by a third party. A bankruptcy order can mean will be free from your debt within twelve months but is not an easy way out and it is always best to seek advice first as there may be a better solution for you.

Speak to one of our Friendly Experts

If you have any questions regarding Bankruptcy or possible alternatives, just simply fill in the form opposite and one of our friendly experts will contact you.

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