Solutions to Bankruptcy

What is Bankruptcy?

Bankruptcy is the most severe consequence of being in serious debt and should be considered very carefully. If you are unable to make a reasonable contribution towards your debts and your situation is unlikely to improve, it may be the best solution for you. By declaring yourself bankrupt you do get a fresh start, relief from your debt and protection from your creditors, but:

• Your assets (including your home) may have to be sold off to pay your creditors
• Your situation will be advertised in the newspapers
• All your bank accounts will be closed
• Your reputation may be affected
• Your landlord will be informed
• You may risk losing your job

There may be a better way

An IVA could mean that you avoid bankruptcy. It acts as a legally binding agreement between yourself and your creditors and means that you pay back an affordable, fixed amount over a set period (usually 60 months). During the term, homeowners may be required to release the equity in their property. As long as you stick to the terms of the IVA, your home is protected and you avoid any publicity.

• Debt Management Programme
• Individual Voluntary Arrangements
• Trust Deeds for Scottish residents
• Bad credit bank accounts
  

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