The truth about bankruptcy
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If you have debts that you simply cannot afford to repay, and you've considered all alternatives, you could consider going bankrupt. You don't need to have a specific amount of debt - unless you live in Scotland.
There isn't a set amount of debt you need to have to go bankrupt - unless you live in Scotland, in which case you'll need to owe at least £1,500.
Am I eligible for bankruptcy?
You may be eligible for bankruptcy if you are unable to repay what you owe in full within a reasonable period of time.
So if you've been struggling with your repayments, and you owe more than you can afford to pay back, you should consider bankruptcy as an option. There are other options available, though, so it'll help to speak to an expert. A debt professional at the Debt Advisory Centre could discuss your situation with you and talk you through your options. Fill out the debt solution finder to the right to talk to us.
Is bankruptcy right for me?
Struggling with debt can be really worrying, and naturally you'll be looking for the best way to deal with your debt issues.
Bankruptcy could help you to clear your problem debts and start again with a 'clean slate' - but there are drawbacks. For example, if you're a homeowner you'll probably have to sell your house. Certain jobs are not open to people who have been made bankrupt - so you'll need to check your contract to see whether your position would be affected by this. Your credit rating will be damaged for six years too.
If bankruptcy would put you at risk of losing your job or home, and you can afford to make payments towards your debts each month (however small), you should look into the alternatives such as an IVA. Bankruptcy is often seen as a 'last resort' after you've looked into all the other options available to you.
by Shelley BowersBack to blog home