Bankruptcy
For free and impartial money advice and guidance, visit MoneyHelper, to help you make the most of your money.
Bankruptcy might be the most appropriate method of dealing with your debts if you have little hope of repaying them in a reasonable time.
Bankruptcy is a type of insolvency suitable for people with significant debts they cannot repay in a reasonable timeframe. It involves a legal process that writes off all your existing unsecured debts to give you a fresh financial start.
Bankruptcy can be done voluntary or it might be forced on you by your creditors. Bankruptcy can be the best course of action for some debtors, but it should never be a decision taken lightly. Bankruptcy has serious consequences on your future that you need to be made aware of.
The pros
- All your unsecured debts are written off to give you a new start
- No further action can be taken by creditors to recover the money owed
- Creditors should never contact you again regarding the debt
The cons
- Assets can be seized as part of your bankruptcy, including property and vehicles
- You might not be able to continue working in some legal and finance professions (if applicable)
- Bankruptcy is visible on your credit file for six years and has detrimental consequences
- Bankruptcy is also recorded on a public register
More information on Bankruptcy
There certainly is a lot to consider when thinking about using bankruptcy to clear unsecured debts. It may or may not be the right move for you, but the best way to know is to learn more about bankruptcy and receive insolvency advice from a professional. MoneyNerd can help you with the former. With scores of bankruptcy articles on our books, we’re here to help!
- Pros and Cons Of Bankruptcies UK 2022
- How Far Back Does Official Receiver Go? 2022
- What Does Undischarged Bankrupt Mean? Quick Answer
- If I Go Bankrupt, What Happens to My Wages? 2022 UK Laws
- Bankruptcy Student Loans – Are They Included? 2022
- Going Bankrupt with No Assets UK – 2022 Guide to Bankruptcies
- Payment Plan Bankruptcy – All You Need to Know
- Bankruptcy Alternatives UK – The Top Other Options
- Bankruptcy Payment Plans – Complete Review 2022
- Bankruptcy Debt Management – Complete Overview
- Bankruptcy Searches – What You Need To Know
- Bankruptcy or Debt Management Plan – Complete Comparison
- Using Bankruptcy to Get Out of Debt – 2022 Guide