Bankruptcy, what does it mean, what will happen and what are the implications?

If you are in serious debt, bankruptcy should be viewed as your last resort. Other debt solutions, such as an IVA, may help solve your debt problem, depending on your situation.

It’s important to realise that when you are made bankrupt, although all your debts will be cleared, your house and all your assets, such as car, valuable furniture, life insurance plans, and unapproved pension schemes could all be sold off to pay your creditors.

What else does bankruptcy involve?

Being made bankrupt means your bank accounts and credit cards will be closed. Your bankruptcy will be announced in the local newspapers and it can mean other restrictions relating to your work and future ability to obtain financial services. 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 FAQ's

• 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.

More Bankruptcy FAQ's