Bankruptcy is a phrase commonly associated with being in debt. If you are struggling financially and can’t meet your contractual payments you may feel the only option is to go bankrupt. In some instances, Bankruptcy will be the best advice, however before making a decision you should contact a free independent charity and get honest bankruptcy advice.
Bankruptcy Debt Advice Helpline
Bankruptcy is an insolvency solution for people who are unable to repay their unsecured debt. Bankruptcy advice is available from Debt Support Trust for free by telephoning 0800 085 0226.
In a Bankruptcy, you are agreeing to pay a sum of money to apply to enter the solution. The Bankruptcy will be granted either by the local court or an approved money advisor who reviews your application.
In some instances, a person in debt may decide to put a proposal to their creditors to repay a percentage of the money they borrowed, with the rest being cleared at the end. These solutions are an IVA (England, Wales and Northern Ireland) and a Protected Trust Deed (Scotland).
Bankruptcy Debt Advice: Assets
Under a Bankruptcy your assets will only be sold if there is a financial benefit after fees and charges have been taken into account. For instance, if your house is in negative equity then there would be little point selling the property if it would not raise money for the benefit of your creditors.
If you are in employment it’s likely you will be asked to make a contribution towards your Bankruptcy for 3 years.
Scotland and the rest of the UK
Bankruptcy in England, Wales and Northern Ireland is different to Scotland.
Bankruptcy England, Wales & Northern Ireland
In England, Wales and Northern Ireland you can visit your local court to enter Bankruptcy. However in England, Wales and Northern Ireland, if your debt is below £19,000 you can enter a Debt Relief Order (DRO) which costs you £90.
Get Bankruptcy Help
If you would like help and advice with your Bankruptcy please telephone our debt helpline on 0800 085 0226. Our friendly advice team are qualified in the bankruptcy process and can provide free of charge bankruptcy support.