Bankruptcy is a process through which you can be free from debt obligations. This legal process is inspected by federal bankruptcy courts. When individuals and businesses are unable to pay their debts or want to be discharged from the debts then, bankruptcy can be an ideal choice.
Basically, bankruptcy can relieve you from your debt. Although bankruptcy is a complex and serious process, it can give you a fresh start. Bankruptcy can be recorded on your credit card report for 7-10 years. That is why it might affect your credit score. Due to this, you would find difficulties to open a credit card account as well as to get approved loans with favorable rates.
Therefore before you go for bankruptcy, make sure you check your abilities. So, if you are an average person then it will not be profitable for you. There are some requirements that you have to meet, only then you can file for bankruptcy.
The best part of the bankruptcy is that it can write off all your unsecured debts. So, if you want to take a bankruptcy then you must consult with a bankruptcy attorney. The attorney will guide you about the whole process and also its applicable rules and regulations. For bankruptcy, you have to
Once you are done with this, you can proceed with bankruptcy.
Bankruptcy should not be taken lightly as it has serious implications. Apart from its benefits, bankruptcy has several risks. So, if you want to learn more, then you can use our free debt service.
We have been helping our clients for the last 25 years. Our team will closely understand your situation and as per that they would suggest to you whether bankruptcy will be the right option for you or not. There is a wide range of solutions we offer for you that can be suitable for your situation.
Here in this section, you are going to learn about the benefits and risks of bankruptcy. So, let’s check out.
You can be relieved from your unsecured debts and can start afresh.
No further legal action can be taken against you.
Creditors can not ask you for payments to recover the debts.
No additional charges, interests can be demanded.
Creditors can no longer contact you.
Your personal property like your home or vehicles can be foreclosed by lenders.
If you are in legal and financial roles then, bankruptcy may affect your jobs.
Bankruptcy can affect your credit score. Even you might need to pay high-interest rates for loans if you have taken any.
All the information about your bankruptcy will be reported on a public register.
It will affect your privacy.
First, check if you would require to file for bankruptcy.
Collect all your financial documents (tax returns, proof of your income, bank account statements, retirement account statements, and others) and understand your financial condition.
Take credit counseling and check if it is the right debt solution for you.
Complete the bankruptcy forms
Get your filing fee
Print the bankruptcy form
Finally, go to the court to file your forms.
To learn more about the application process of bankruptcy, use our online debt advice tool or consult with our expert advisors. If you will be recommended for bankruptcy then our professionals will guide you about the application procedures and explain to you the risks and benefits of bankruptcy in detail.
Bankruptcy can be a good option for you if you want can not repay your debts within a certain period of time. Bankruptcy is risky as your personal property can be foreclosed. When you go for bankruptcy, all the details of it will be recorded on your credit history for six years. Due to this, your credit score can be hampered and your job can be affected as well.
In some cases, you might have to pay monthly payments for your debts from your available income which is called IPA or income payment agreement. The duration of IPA can be valid for three years. Before taking any decision, use our free online debt advice tool to get the right solution.
The fees of bankruptcy might vary from county to county. In England & Wales, it could be £680 (including the fees of the adjudicator and official receiver) and in Northern Ireland, the total cost is £683 (including the fees of court, bankruptcy, and solicitor).
Most of the debts lead to bankruptcy. So, when you choose bankruptcy, all your debts will be removed. However, child maintenance arrears, criminal fines, and tv license arrears are not included in bankruptcy
Once you go for bankruptcy, all your debts will be written off and you have to be under bankruptcy restrictions. If you break any of the rules or misbehave then bankruptcy restrictions can be extended. Even the official receiver can order BRO against you that will last for 15 years. The details of your bankruptcy can be recorded on the Insolvency Register or Bankruptcy register for three months. So, if you have BRO then the time period can be extended. You can be charged for making payments by the official receiver.
Bankruptcy can be an ideal choice if you want to write off your debt but it can affect many areas of your life especially to your personal assets. Personal bankruptcy generally remains for one year in the UK. Within this time if you want to take a loan of more than £500 then you have to inform your creditor. Moreover, inform the official receiver before declaring any changes. Even your valuable property can be foreclosed but you can keep the things that you would require for day-to-day living.
If you want to be bankrupted then you have to understand many factors related to it. Make sure you are aware of the consequences and its after-effects. Use our personal bankruptcy guides to learn more about the process.