Advice / Information


Bankruptcy Pros and Cons

  Bankruptcy is an extremely effective debt solution for some, and not for others. It depends entirely on your circumstances and what is right for you.


  • All of your pre-existing debt is wiped off.
  • Creditors can no longer hassle you.
  • First-time bankrupts are usually discharged within 12 months (sometimes sooner).
  • If you rent or live with parents you don't risk losing your home.
  • You can keep tools of your trade.
  • You can keep a car worth £2500 or less.
  • You have the chance to rebuild your credit rating once discharged.
  • You can get your finances back on track.


  • You lose control of your assets (house, savings, expensive car (over £2500)
  • You cannot obtain credit for over £500 without the declaring that you are bankrupt..
  • You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
  • You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.

Occupations affected

  • You cannot act as a company director.
  • You may not practice as a Charted Accountant / Lawyer.
  • You may not act as a Justice of the peace (JP).
  • You may not become an member of parliament.
  • You may not become a member of the local authority.