Bankruptcy is a legal procedure for people who can’t pay their debts within a reasonable time.
Bankruptcy is a form of insolvency; to be eligible, your unsecured debts must outweigh your assets, including any property and vehicles.
If you make yourself bankrupt, your creditors will write off your unsecured debts, giving you a fresh start. However, during the term of the bankruptcy (usually 12 months), you will be subject to certain restrictions.
To file for bankruptcy, you will have to pay fees of £700 (£175 to the court and £525 to the official receiver).
If your application is approved, creditors are prevented from charging interest or from contacting you or taking legal action to recover the debt.
Bankruptcy should not be taken lightly; it is a big step and you may have to give up your assets. Always get expert advice if you are considering going bankrupt.
How can we help?
We can provide you with free, confidential debt counselling that will help you find the best debt solution for your situation.