Bankruptcy is a very public process where you legally admit that you are insolvent and can no longer afford to make repayments. You surrender your assets in order to make some form of repayment your creditors and everyone that you are financially connected with will be notified.
A Bankruptcy Order will:
This Order can still be made even if you refuse to acknowledge or agree to the proceedings. You should therefore co-operate and if you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so afterwards is both difficult and expensive.
Future assets acquired during the term of the bankruptcy will be lost, such as inheritances. All your possessions and disposable income are converted into cash, which will go towards repaying some or all of your outstanding debt to your creditors.
Bankruptcy does not have to be your only option out of spiralling debt levels. AllClear Finance can help you find a number of other options available, such as:
If you find yourself in serious financial difficulties, please give AllClear Finance a call on 0808 131 0038. We will offer professional friendly advice, and see if we can advise you on any alternatives to bankruptcy.
In terms of solving debts, bankruptcy is an extreme solution, and is only suitable for debtors when all other options are exhausted. Always take expert advice from an Insolvency Practitioner.