Bankruptcy

We've set out below some basic information on bankruptcy but as you will see this is just general information - if you want advice on your specific circumstances and whether bankruptcy is the best option for you please give our team a call 0800 8047447 for a free confidential consultation.

You can also fill in our enquiry form and we'll get back to you.

Or read on...

So you believe bankruptcy might be the answer but you need more information - you've come to the right place!

Bankruptcy is one way for you to deal with unsecured debts that you cannot pay. The idea is that it will allow you to make a fresh start and any assets you do have will be shared out among your creditors fairly. Upon being made bankrupt there are a number of restrictions placed on you for the period you are bankrupt.

How do you become bankrupt?

There are two ways to be made bankrupt

1. A creditor (someone you owe money to) can apply to Court to make you bankrupt (creditors petition).
2. You apply to Court to make yourself bankrupt.

The main advantages/disadvantages of being bankrupt

Bankruptcy lasts for a maximum period of 12 months

You lose control of your assets.

You cannot get credit over £500 without informing the person you are obtaining credit from you are bankrupt

The debt situation is solved, i.e. you are given a fresh start

Once discharged, you will be free from the bankruptcy debts.

The bankruptcy is advertised

You cannot be a company Director while bankrupt

You have more control over how your assets will be dealt with.

You can still hold public office and there are less job/career restrictions although it is still best to check

You cannot be concerned with the management, promotion or formation of a limited company while bankrupt

You can trade as a sole trader but under the name under which you were made bankrupt.

Certain careers are prohibited

You cannot trade under any other name other than that under which you were made bankrupt

Credit rating may be affected even after the bankruptcy has ended. It will be registered with credit reference agencies and will usually stay on file for a period of 6 years.

If you own your own business this will usually be closed down and your employees contracts terminated

If you're not sure what information you need or you want to discuss all your options please feel free to give our team a call on 0800 8047447 for a free confidential consultation.

Or complete our enquiry form and we will call you back