If you have looked at alternative bankruptcy solutions such as IVA (Individual Voluntary Arrangement), Debt Management and Trust Deeds but found that the only solution is bankruptcy then you should be aware of the implications.
Bankruptcy as a debt solution should always be considered as a last resort. Once you go down the road of bankruptcy you can be debt free in 12 months!
How to declare bankruptcy
Any individual who is in overwhelming debt may voluntary declare bankruptcy, on the basis that they cannot afford repayments and consider themselves insolvent.
However, if you file for bankruptcy then you will have to pay the court administration fees for the process. If you are made to go bankrupt then these fees will not apply to you.
The process of going bankrupt
Once you have declared bankruptcy then you will have to follow a process to get the ball rolling, so to speak.
First a petition for Bankruptcy and Statement of Affairs Forms will be required to start the bankruptcy proceedings.
A presentation of forms will then be followed to be shown at court. All administration fees (relevant) will have to be paid at this time.
Hearing- Once you are legally declared bankrupt.
Bankruptcy will get you debt free and you can relatively start a new after. A lot of implications will apply once you have been declared bankrupt. But it also has its benefits.
Walt Disney went bankrupt after he lost a building deal. But he managed to recover. You may have also heard of Kerry Katona who went bankrupt, and is now on the road to recovery. It’s not the end of the world if you go down this road.
Consumers in England and Wales may also wish to consult the Insolvency Service’s debtor guide – In debt? Dealing with your creditors…
Free debt counselling and advice is also available from the Money Advice Service
available at: https://www.moneyadviceservice.org.uk