You are not alone…
We are here to help you
call free on 0800 954 6518
Our trained advisors are waiting for your call, there's no wait
time and no need to make an appointment.
Our office opening hours are:
Mon - Fri: 8am - 9pm, Sat: 9am - 5pm, Sun: 10am - 4pm
Bankruptcy: what does it mean and what will happen?
Even for very serious debts, bankruptcy should be viewed as your last resort. It is the most drastic solution with the longest lasting consequences. However hopeless you may feel your situion is, you should always check with us first that other debt solutions, such as an IVA are not a better alternative. The Debt Advice Trust does not have a 'preferred' solution to debt and we will give you honest impartial advice
When you are made bankrupt, all your debts will be cleared (with the exception of student loans), however your house and all of your assets could all be sold off to pay your creditors. That includes your car, valuable furniture, life insurance plans an unapproved pension schemes.
What else does bankruptcy involve?
When you are made bankrupt your bank accounts and credit cards are closed. Your bankruptcy is announced in the local newspapers and you can face restrictions on what work you can do in the future. It can also be hard to get financial services in the future. That’s why you should view this option very much as your last resort.
The lasting effects of bankruptcy
You will normally be discharged from being bankrupt after 12 months. However, you should be aware that this can be extended for as long as 15 years, depending on what restrictions are placed on you by the official receiver.
Bankruptcy advice FAQs
- Q: Will bankruptcy affect my job?
A: In certain professions, you could run the risk of losing your job. And if you are self-employed, your business will be normally be closed down. You can start to trade again but will be subject to restrictions. You will also be barred from being a company director without court permission.
- Q: How do I know if I qualify for an IVA and if it’s better for me than bankruptcy?
A: Talk to us. We'll offer you free, honest and impartial advice. An IVA can save you from all the embarrassment and major implications of going bankrupt. An IVA can also help clear your debts and enable you to make a fresh start. But it all depends on your situation - there may be other alternatives you could consider. Call us now and find out.
