Bankruptcy is the most severe consequence of debt and should never be entered into lightly. For some people, however, bankruptcy may be the most appropriate solution. It can be the best way to repay what they can of their debt, write off the rest – and make a fresh start.
Should I consider bankruptcy?
If your debts are high and your income is low, it’s worth finding out more about bankruptcy. Ask yourself:
If the answer to every question is ‘no’, there’s a good chance bankruptcy could be right for you.
What are the advantages of bankruptcy?
What are the disadvantages of bankruptcy?
You should weigh up the pros and cons of bankruptcy yourself, but you shouldn’t make any decisions without talking to a specialist. Before you make your decision, you need to understand how bankruptcy would affect you, and how those consequences differ from those of the alternative debt solutions (see the list below).
To talk to one of our specialists about bankruptcy, call us on freephone 0800 161 3516 – or fill in the call-back form on this page and we’ll phone at a time that suits you.
How do I apply for bankruptcy?
First of all, there’s Voluntary bankruptcy: you file a bankruptcy petition at the County Court, and it’s up to the district judge to decide whether or not to grant the bankruptcy. It costs £485, but the court fee (£150 of this) may be waived if you’re on a low income or unemployed.
Then there’s Involuntary bankruptcy: any creditor can petition for your bankruptcy if they’re owed £750 or more.
What are the alternatives to bankruptcy?
Bankruptcy is just one solution to debt. Many people would be better off considering one of the following:
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Subject to eligibility and acceptance, debt write-off applies on completion of an Individual Voluntary Agreement, alternative solutions may be offered. Fees payable. Your ability to obtain credit will be affected. Homeowners may be required to remortgage during the term. Calls may be recorded.