Do Not Become Bankrupt to Clear Your Debt.
I read today that a 22 year old who has just finished University with a £12,000 student loan and a £4,000 credit card debt, is considering declaring themselves Bankrupt as it seems like the easiest even only option to take.
I find it disturbing that they would risk in the future obtaining a mortgage. Mobile phone companies, estate agencies for letting homes, Banks and building societies all require credit checks. Lenders will be very wary of lending money to anybody who has had a history of bankruptcy. Currently any defaults, CCJs and bankruptcies, stay on your credit history for six years.
The best alternative to bankruptcy and to clear your debtis to contact the citizen’s advice burro for independent advice. Or contact a debt advice charity, who can help you setup a suitable repayment plan, in the form of an IVA.
