Bankruptcy Implications
Bankruptcy comes with many unavoidable long term implications which need to be considered before you make your final decision. We can offer you free Debt Advice on 0808 131 9110.
Debt Advice - Bankruptcy Implications:
- Your assets will become the property of the Trustee and sold to make some form of repayment to your creditors, including your home and possibly your car.
- The only assets you can keep are those which are required for a basic standard of living.
- Any spare income will be paid to your creditors.
- Your future career prospects may be hindered as bankrupts cannot become company directors.
- Your credit rating will take years to rebuild, as the bankruptcy order will remain on your credit file for six years.
- Details about your Bankruptcy will be advertised in your local paper and can be viewed online.
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.)