Call Us Free: 0800 564 22 11
Follow Us:

What Is Bankruptcy

Bankruptcy Helpline
0800 564 22 11

What Is Bankruptcy?

Bankruptcy is an option that often has to be considered when you cannot pay your debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order.

What Is Bankruptcy

Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases. However bankruptcy is just one of several options to be considered when you cannot repay your debts. If you are ever faced with the prospect of bankruptcy you should always look at alternatives as soon as possible such as an Individual Voluntary Arrangement or a Debt Management Plan.

Find out what debt help you qualify for?

Check now

Just take our FAST, FREE Online Assessment to see if you can be debt free in 2016!

Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings can:-

  • free you from overwhelming debts so you can make a fresh start, subject to some restrictions
  • make sure your assets are shared out fairly among your creditors.

How are you made bankrupt?

You can be made bankrupt either in one of three ways.

  • Voluntarily Bankruptcy - you apply to become bankrupt yourself.
  • Involuntarily Bankruptcy - A creditor you owe money (£5000 Minimum) applies for your bankruptcy
  • Failed IVA - The supervisor or anyone bound by an IVA if the conditions of the IVA are not met.

A bankruptcy order can still be made even if you refuse to acknowledge the proceedings or refuse to agree to them. You should therefore co-operate fully once the bankruptcy proceedings have begun. If you dispute the creditor’s claim, you should try and reach a settlement before the bankruptcy petition is due to be heard. Trying to do so after the bankruptcy order is made is both difficult and expensive.

What are the implications of bankruptcy?

  • You lose control of your assets.
  • You cannot obtain credit for over £500 without the permission from the lender.
  • You cannot act as a company director.
  • You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
  • You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
  • You may not practice as a Charted Accountant / Lawyer.
  • You may not act as a Justice of the peace (JP).
  • You may not become an member of parliament.
  • You may not become a member of the local authority.
  • Your credit is affected for many years after the annulment.
  • You may be publicly examined in court.

What are the advantages of bankruptcy?

  • For the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year (or less in some cases).
  • For the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out.

There are many long term disadvantages of Bankruptcy which need to be considered before you make your final decision.

N.B. Are you sure declaring bankruptcy is the only option?

But before you apply for bankruptcy make sure you're certain you've considered the following questions:

Need Bankruptcy Advice?

Our panel of specialists can quickly advise you on what to do if you are considering going bankrupt. Simply call the team FREE on 0800 564 22 11.
Alternatively take the online bankruptcy test and check if you qualify.

  • Last updated 05 January 2016

no credit on prepayment meter

What to do if your prepayment meter has run out of credit

  • by Admin
  • June 23, 2015

This guide explains what you should do if your pre-payment meter for gas or electricity runs out of credit....

Read


dealing with debt collectors

How To Deal With Debt Collectors

  • by Admin
  • June 22, 2015

Have you received a letter or call from a debt collection agency. In this guide we'll expain how to deal with debt collectors...

Read


attachment of earnings

A Guide To An Attachment of Earnings Order

  • by Admin
  • June 23, 2015

Have you received a letter threatening an attachment of earnings. In this guide we explore what an attachment of earnings order is, how they work and how to defend...

Read

Contact the Bankruptcy Advice Online Team:

debt helpline 08005642211

0800 564 22 11

(freephone, including all mobiles)
bankruptcy advice

Request A Callback

No time to talk, we'll call you back.
bankruptcy questions

Have A Question?
Ask an expert now.

Check now online whether bankruptcy really is your best option?


PERSONAL GUARANTEE: Your details will be kept confidential. We will NEVER pass your details on to third parties unless you ask us to. We NEVER cold call or cold text.

More info on hoax calls

Latest testimonial

Fantastic,they are life savers.

I Contacted them at 5 pm on a Thursday night,they arranged a meeting Friday morning with all the relevant bodies their because my case was the following Monday .I can't sing their praises high enough they contacted the courts same afternoon. Fantastic response, I avoided bankruptcy on the Monday and was given time to arrange an Iva. I risked losing my home,my mother and fathers home all hope seemed lost until I made that fateful phone call. I can now sleep at night.

Darren
Contact Us
  • Address: 20-22 WENLOCK ROAD LONDON ENGLAND N1 7GU
  • Phone: 0800 564 22 11
  • Email: [email protected]
  • Monday - Friday: 8:00 am - 9:00 pm
    Saturday - Sunday: 10:00 am - 4:00 pm
Say Hello

You can also get free impartial debt advice by following this link to the Money Advice Service.

BankruptcyAdvice-Online.co.uk © 2015-2016 All right reserved. Made with in Manchester

BankruptcyAdvice-Online.co.uk does not charge you any fees for using our service, all of our network partners will also provide you with a free initial consultation free of charge, to ensure you get the advice you need when you need it.

We will pass your details on to one of our network of our approved Insolvency Practitioners or Debt Advice Charities who will contact you and explain all the options available to you. They will then be able to help you set up a debt solution which is right for you.

The debt solution offered to you by our network will depend on your criteria and circumstances, including how much you owe and how many creditors you owe money to. You need to speak to a debt advisor to obtain a full assessment.

BankruptcyAdvice-Online.co.uk is owned by Money Advice Online Ltd company no. 09554412 (Registered in England and Wales). ICO registration no. ZA116663