You could be asked to pay into an income payment arrangement. You would be expected to contribute between 50-70% of your available money after paying for your living expenses towards your debts.
An income payment arrangement would normally be arranged for up to three years. If your financial position changed within this time the amount you need to pay may be altered to reflect your situation. If you were to go bankrupt while receiving benefits, you would not normally be asked to pay into an income payment arrangement.
If you are a homeowner and have equity in your property, it is likely that you would be made to sell it. This would be needed in order for you to use the equity towards the debts that you owe.
It may be possible to safeguard your home if a family member or friend is willing to buy your share of the property (usually expected to be the market value of your share of the property). This enables the equity to be released, but still allows you to stay in your home.
If your property is in negative equity, where your mortgage is more than the property is worth, you may be given the opportunity to keep your home.
Other debt solutions may be more appropriate and allow you to keep your property. If you would like to know if bankruptcy is the right solution for you please use our online counselling service or call our free Helpline on 0800 138 1111.
Yes. You would still be allowed to operate a basic bank account whilst bankrupt.
It may do. If you are unsure whether bankruptcy may affect your job, you must check the terms and conditions of your contract of employment. You can also speak to your union representative or personnel department.
You are not able to act as a director of a limited company.
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