Is Bankruptcy Right For You?

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Is Bankruptcy Right For You?

Favourable circumstances concerning bankruptcy

People with no assets People living in either rented accommodation or with friends and family Those whose livelihoods would not be lost or affected by Bankruptcy

There’s no risk of bailiffs coming round and taking any of your belongings. Once you enter into the protection of a bankruptcy order, creditors can no longer harass you for your debts as they are no longer your responsibility. You can keep the tools of your trade, your car (providing it’s not over £2500), household goods, clothing, bedding and furniture.

If you own your own property it will not be seized from you if it is in negative equity. However, if there is equity in the property then it will be seized.

How bankruptcy affects you

Once declared bankrupt you will be subjected to certain bankruptcy restrictions. You will not be able to obtain credit over £500 without informing the lender that you are bankrupt. Realistically, you will have difficulty obtaining any credit during the 12 months that you are bankrupt, but once discharged it will become increasingly easier and a discharged bankrupt will still be able to have a mortgage in the future.

Bankruptcy will be recorded on your credit file for 6 years from the day that you were made bankrupt, despite the fact that you will be discharged from bankruptcy after 12 months.

What do you need to do?

Seeking professional advice is the best way forward. You can complete an enquiry form and one of our advisors will call you back. Alternatively you can contact us directly.

Start to gather all details of your creditors and what you owe, as well as a rough idea of your expenses. You will need this information later. If you’re not sure who your creditors are you can find them on your credit file. Request your credit file here.

Certain occupations are also excluded from bankruptcy

Some occupations are affected by bankruptcy and it is your responsibility to check your employment contract if you are at all unsure. Click here to see if your occupation is affected.