What does Personal Bankruptcy involve?

If you’re in serious debt, personal bankruptcy should only be considered as a last resort. Talk to the Debt Advice Trust first for free, expert, impartial advice in case a better alternative, such as an IVA or another debt solution, may be available to you.

Personal bankruptcy becomes a possibility when you can no longer meet the debt repayments to your creditors. Either you, voluntarily, or your creditors can then file a bankruptcy petition with the courts. However, depending on your circumstances, your creditors will usually be far more receptive to you taking out an IVA to pay off your debts. This can save you from going bankrupt. Call us for further advice about IVAs and other debt solutions.

Personal bankruptcy is not the same as corporate bankruptcy

There are different insolvency procedures which apply to personal bankruptcy as opposed to those which apply to companies who become bankrupt. Again, the Debt Advice Trust can advise you on all the implications and effects of personal bankruptcy, including all the stages that are involved.

Avoiding the restrictions of bankruptcy

There are enormous pressures involved in being in serious debt. But bankruptcy should not be considered lightly as the implications are very extensive. Calling the Debt Advice Trust is free so you’ve got nothing to lose in finding out what other possible debt solutions, such as an IVA, may be open to you.

Personal Bankruptcy FAQ's

• Q: If I declare personal bankruptcy but also own a business, what happens?

  A: This applies if you are self-employed. Your business will normally be closed down and any employees will be made redundant. You will also not be able to be a company director again without court permission.

• Q: What if my combined assets are still not enough to pay off all my debts?

  A: Declaring personal bankruptcy will still clear all your debts and protect you from your creditors. Even so, it should only be seen as the very last resort.

More Bankruptcy FAQ's