What you need to know about Bankruptcy
Bankruptcy is a solution that enables people to deal with their money worries if they find themselves in a position where they are unable to repay their debts.
Advantages of Bankruptcy
- Protection from creditors as they can no longer chase you for outstanding unsecured debts
- Become free from unsecured debts in 12 months (restrictions apply – see table below)
- Reduce stress associated with mounting debts and dealing with a number of creditors
How Bankruptcy can affect you
| 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. |
Bankruptcy support service
If you qualify for Bankruptcy, we will transfer your case to our sister company, Baker Evans Ltd, who will provide a comprehensive Bankruptcy support service.
If you need information on the other type of debt services available to you, take a look at our Bankruptcy solutions page, or call us on 0800 096 1331 for expert advice.
Baines and Ernst Ltd