Is Bankruptcy the right solution for you?
Many people in debt think the only option available to them is Bankruptcy, but there could be other solutions such as a Debt Management Plan, IVA or Debt Relief Order available to you.
As part of our Bankruptcy support service, we will discuss your current financial situation with you thoroughly to ensure it is the right option for you. If Bankruptcy is the path you need to take, rest assured our expert advisors will guide you through the process and refer your case to our sister company, Baker Evans Ltd, for completion.
If you have a very low disposable income and cannot afford to make repayments to your creditors, speak to our specialist Bankruptcy support team today on 0800 096 1331.
Advantages of Bankruptcy
| Protection: | Once you have been declared bankrupt, creditors can no longer chase you for outstanding unsecured debts. |
| Clear debts: | Although restrictions apply, Bankruptcy can free you from unsecured debts. |
| Peace of mind: | Bankruptcy is one of the most severe debt options available to people who are struggling to repay debts, however it can alleviate the stress associated to dealing with a number of creditors. By removing this pressure, you can begin to concentrate on your priority debts and get your finances back on track. |
Bankruptcy: what you need to know
| Fees: | Typical costs to petition for Bankruptcy include an Official Receiver Fee or Deposit of £525 and court fees of £175; however the court may waive this fee in some cases. You may also have to have to make regular contributions from your salary; however this is dependent on your personal circumstances. |
| Restrictions: | Certain restrictions will be placed on you and you will lose control of your assets, including any equity you may have in your home. |
| Business: | If you own a business, you may be asked to close it down. |
| Lending: | You will find it difficult to secure credit in the future. |
| Credit rating: | Your credit rating will be adversely affected in the long term. |
| Debts: | Only unsecured debts (debts not secured against property or assets) can be included in a Bankruptcy application. Debts including hire purchase agreements, student loans and child support are not included and must still be paid as normal. |
| Career: | You will no longer be allowed to hold certain public offices. In some circumstances your employment may be affected – you should check with your Human Resources department before applying for Bankruptcy. |
| Declaration: | You will have to declare that you have been made bankrupt when opening a bank or building society account. If you have a bad credit rating, you will find it difficult to open an account. We recommend the Evolution Current Account as you do not need to complete a credit check to qualify and it gives you greater control over your finances. |
Baines and Ernst Ltd