Bankruptcy

You do not have to become bankrupt just because you are in debt. There are alternatives.

Bankruptcy should be a last resort but is one way of dealing with debts you cannot pay. A bankruptcy order will free you from overwhelming debts so you can make a fresh start, subject to some restrictions and ensure your assets are shared out fairly among your creditors.

You can make yourself bankrupt but the costs are high. Going bankrupt can take the pressure of creditors away from you. You are allowed to keep certain things like household goods and a reasonable amount to live on.

When the bankruptcy order is discharged, you can make a fresh start and the money you owe is usually written off. In many cases, this can be after one year. In other cases, you may have to make monthly payments for a total of three years before being "discharged" from the bankruptcy.

You will have to give up any possessions of value and your interest in your home. A bankruptcy order will involve the closure of any business you run and will also impose certain restrictions on you.

Bankruptcy is a serious matter. If you are thinking of going bankrupt you should first seek legal advice.

Services - Debt