(available in England, Wales and Northern Ireland only)
If you have a debt problem, one of your options for sorting it out might be Bankruptcy. You can apply for Bankruptcy if you can’t pay back your debts. As well as applying for bankruptcy yourself, someone else you owe money to (a creditor) can apply to make you bankrupt, even if you don’t want them to. For a creditor to make you bankrupt, you must owe at least £5,000. There’s no minimum amount of debt required to go bankrupt. If the value of your unsecured debt is greater than the value of the belongings you own, such as property or vehicles, it may be an option for you. If you can afford to make a payment, you will be asked to do so for up to 3 years. Bankruptcy will adversely affect your credit rating and will remain on your credit file for 6 years from the day you are declared bankrupt.
MAIN ADVANTAGES AND DISADVANTAGES:
- Generally it’s a quick process to commence through a court procedure, you are usually discharged after 12 months.
- Once your bankruptcy is discharged, all included debts are written off.
- You can pay the fee online in instalments, and your bankruptcy application will begin once your fee has been paid in full.
- Bankruptcy will prevent your creditors from taking or continuing with any legal action against you to recover the debts included in your bankruptcy.
- All interest and charges will be frozen.
- There are certain debts that cannot be included in a bankruptcy, such as student loans, CSA arrears and court fines; these would still need to be paid outside of the bankruptcy arrangement.
- Once you are declared bankrupt, an Official Receiver or Trustee will take control of your estate, which could result in any assets being sold.
- If you can afford to make a payment, you will be asked to do so for up to 3 years.
- Bankruptcy can impact on certain jobs. If bankrupt, you cannot be a director of a limited company.
- Bankruptcy will adversely affect your credit rating and will remain on your credit file for 6 years from the day you are declared bankrupt
Freephone 0800 009 6211
Consumer Information Service only gives advice, we do not provide any debt solutions and we do not charge for our advice. If during our conversation with you and after discussing the options that are available to your personal situation you decide a debt solution is the most appropriate option for you, then we offer a no obligation referral to carefully selected debt solution providers for which we may receive a referral fee.
Some debt solutions involve fees to you. These fees will always be explained to you and can differ depending on your circumstance. Any fees will be confirmed in writing from the debt solution provider before any agreements are signed.
Consumer Information Service is a trading name of Consumer Claims Service Ltd, registered in England and Wales, Company Number 9703609. Registered Address Fernhills Business Centre, Foerster Chambers, Todd Street, Greater Manchester, United Kingdom BL9 5BJ. Data Protection Registration Number: ZA145229 Consumer Information Service is an Appointed Representative of Debt Help Ltd authorised and regulated by the Financial Conduct Authority 782878.