Bankruptcy Benefits
Bankruptcy is a serious debt solution and the implications can often outway the benefits. There are other alternatives which you should consider before declaring yourself bankrupt such as Debt Management or IVA. Contact us for more information on 0808 131 9110.
Debt Advice - Bankruptcy Benefits:
- All your debts are written off, and you should become debt free within 12 months thus giving you a fresh financial start.
- Creditors are forced to recognise that they will have to accept less money than is owed.
- If you are in rented accommodation and have kept up with payments, then you will be able to live there and continue paying rent.
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.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)