What is Bankruptcy?
Out of all the debt solutions available, Bankruptcy is perhaps the most well known. This is because we often hear about people or businesses in the public eye going bankrupt.
Bankruptcy is a debt solution that could free you from unsecured debts in 12 months – but it certainly isn’t without stresses and strains. For example, you could lose your home if you are a homeowner, your valuable goods will be sold to repay your lenders and you will find it hard to secure credit in the future.
We always say Bankruptcy should be a last resort and will help you find out if your money troubles could be resolved in another way first.
But if you really cannot afford to repay your debts and have no way of clearing what you owe, then Bankruptcy could be the answer to your debt problems.
You will no longer need to make repayments on your debts every month when you declare bankruptcy.
However, in some cases, you may have to make contributions from your salary for three years from the start of Bankruptcy to help repay what you owe, but this will depend on your personal situation.
Bankruptcy normally lasts for 12 months, so after this time you could be released from your Bankruptcy Order which means you will be free from unsecured debt.
Once you have been declared bankrupt, lenders can no longer chase you for payment – which will help to cut pressure surrounding debts.
Bankruptcy can be a confusing process – but you don’t need to go through it alone. Our Bankruptcy Support Service will help you to make sure all your paper work is in order and completed correctly so your Bankruptcy Order can be processed as quickly and as smoothly as possible.
Bankruptcy - Fees & key info
At Baines & Ernst, we help people beat debt by offering the highest standard of service, expert debt advice and affordable solutions. Our fees depend on your personal circumstances, and we’re always honest and upfront about these costs. The Bankruptcy Support Service is provided by our sister company Baker Evans, click here to learn more about the support service fees.
You can view a free publication from The Insolvency Service ‘In Debt? Dealing With Your Creditors’ which provides an overview of some of the debt solutions that may be available to you.
Alternatively, if you’re in Northern Ireland, you could look at the Department of Enterprise, Trade and Investments ‘In debt? Dealing with Creditors’ guide, here. Residents of Scotland can also look at the Scottish Governments ‘Debt Advice and Information Package’ guide here.