What Is Bankruptcy?
Bankruptcy is one way of dealing with debts you cannot pay.
The bankruptcy proceedings:
free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and
make sure your assets are shared out fairly among your creditors.
Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.
Pros and Cons of Bankruptcy
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removes anxiety caused by dealing with numerous creditors
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you usually pay less
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offers a fresh start
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most creditors cannot take further action against you
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the process is certain
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you will almost certainly lose any assets of value
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may lead to your home being sold
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if you own a business, employees may have to dismissed and the business sold
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you cannot obtain credit of more than £500 without disclosing your status as an undischarged bankrupt
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your credit rating will continue to be adversely affected
Further Information
What Is Bankruptcy? Want to know more? Contact us now using the contact form or call us on 0800 988 7701 for no obligation help and advice.
Our Bankruptcy service is available in the following countries:
In Debt? Dealing With Your Creditors - Must read guide from the Insolvency Service.
