Bankruptcy

Bankruptcy can sometimes bring immediate debt relief as a last resort. However, Payplan will give free debt advice for all circumstances by reviewing your debt problem and advising you of all the free debt solutions available.

Will bankruptcy benefit me?

Use the quick and simple form below or call 0800 917 7823 for free debt help and bankruptcy advice

What is Bankruptcy?

The period of bankruptcy now usually lasts for a maximum of 12 months instead of the previous two or three years. However the restrictions on obtaining credit, being a company director or working in certain professions still remain. Most people who have a regular income will also be required to make monthly payments for three years towards their debts based on what the Official Receiver thinks they can afford.

If you own a property or other assets the Official Receiver will require you to sell these to pay back the money you owe. In relation to your home this could happen up to three years after the date of your bankruptcy, but without time limit for other assets.

For further information or to discuss the implications for you of going bankrupt please call us on freephone 0800 917 7823 or e-mail us in complete confidence.

The Advantages and Disadvantages

What are the advantages of bankruptcy?

Once a debtor has been discharged from bankruptcy, they are no longer liable for any outstanding debts, as long as they were detailed in the bankruptcy proceedings. This provides a "fresh start" for those unable to clear their outstanding debts within a reasonable timescale.

What are the disadvantages of bankruptcy?

The Official Receiver can sell any of your assets, this includes your family home, your car and any of your household effects (if they are deemed to be of excessive value).
You will be obliged to declare you are an undischarged bankrupt if you apply for credit in excess of £500.
Certain occupations and professions, such as the Police Force, Armed Forces, Local Council and Government Offices. Many corporate employers carry out background searches - this could also mean that promotion prospects could be affected.
You will be unable to act as the director of a company.
You cannot take any part in the promotion, formation or management of a limited company 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.
There may be restrictions on you practicing as a Accountant / Solicitor.
If a Bankruptcy Restriction Order is granted:
1. You cannot become a Member of Parliament.
2. You cannot act as a Justice of the Peace (JP) or Governor of a School.
3. You cannot become a member of the Local Authority.

The bankruptcy order remains on your credit reference file for six years.
Any member of your family or even your employer, could be publicly examined in court if the Official Receiver believes this will aid the investigation.

Bankruptcy is often considered a "last resort" option, but there are other alternatives that can avoid the severe consequences of bankruptcy:

Go to our debt information library for detailed information on all debt-related issues.

More Information on Bankruptcy

Bankruptcy

Bankruptcy can sometimes bring immediate debt relief as a last resort. However, Payplan will give free debt advice for all circumstances by reviewing your debt problem and advising you of all the free debt solutions available.

Will bankruptcy benefit me?

What is Bankruptcy?

The Advantages and Disadvantages

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