Consumer Debtline

Bankruptcy Advice

SOLUTIONS TO CONSUMER DEBT PROBLEMS

BANKRUPTCY OVERVIEW

If you are suffering from major financial troubles bankruptcy is a method for wiping the slate clean and allowing you to start afresh. Filing for bankruptcy also ensures that your assets are shared out fairly among your creditors. For the bankruptcy to proceed a petition has to be presented to the Court who will issue a Bankruptcy Order. The Bankruptcy Petition can be presented either by yourself or by one or more creditors who are owed atleast £750.

BENEFITS & DRAWBACKS OF FILING FOR BANKRUPTCY

Advantages

• you are protected by the Court from any further debt recovery options being taken by your creditors including CCJ's and Statutory Demands
• the Court appoints an Official Receiver or a nominee who will deal with your financial affairs on your behalf
• after being discharged from the bankruptcy most of your debts will be written off allowing you to start afresh

Disadvantages

• the Bankruptcy Order will be publicised in your local newspaper
• any valuable assets such as your home or car may be sold to repay your debts
• you will have to pay an upfront fee if you wish to apply for your own bankruptcy
• you may find it difficult to obatain a bank account during the bankruptcy period
• you will not be able to work in certain professional capacities or act as a director of a Limited liability company

If you would like to discuss your debt problems with an experienced and impartial advisor then call us on freephone 0800 043 50 43 or alternatively complete our enquiry form.