Is bankruptcy right for me?
At PayPlan we take great care to ensure that we recommend the best solution for you, based on your specific circumstances. We will always offer simple, impartial advice and look to find the most appropriate solution to get you debt-free.
Bankruptcy may be the right solution for you if:
- You just cannot find any way of paying off the debts you owe
- You don’t own many items of value and there’s little or no equity in your property, so the value of your debts is higher than the value of your assets
- It’s unlikely that your situation will improve
- Bankruptcy won’t impact on future plans if e.g. starting a business
Bankruptcy may not be the right solution for you if:
- You have at least £50 in disposable income – in this case, another debt solution could be a better solution that would have less of an ongoing impact on you.
- The value of your assets such as your house and belongings could pay off your debts.
- It may affect your employment – bankruptcy prevents some professionals from working, e.g. if you work in the financial sector, but other employers may also impose restrictions, so you should check your employee contract before opting for bankruptcy.
- You are not prepared for your credit rating to be affected for six years.
- You wish to act as a company director, create, manage or promote a company now or in the future while bankrupt. You will need permission from the court in order to do any of these things. There is also a restriction on appointing family members who you control while you are not a director.
- One or more of your debts is in joint names, as the other debtor would be held accountable for the entire amount of debt that was taken out in joint names.
- You own a company, as it will most likely be
shut down and all employees dismissed.
- You wish to keep your financial difficulties private – bankruptcy is advertised in The London Gazette, and your family and employer can be publicly examined in court as part of the process.
- Your debts include student loans, fines, debts arising from family proceedings such as maintenance orders or budgeting loans and crisis loans owed to the Social Fund, as these won’t be cleared by bankruptcy.
- Your circumstances are likely to change in the near future and you may come into money, for example through inheritance or missold PPI, as this may open up more, less impactful debt solutions to you.
- You have access to a pension lump sum that is bigger than the value of your debts, as you may not be allowed to declare bankruptcy.
Our experienced, helpful agents will always make sure we recommend the right debt solution based on your specific circumstances. Call us FREE on 0808 278 3071 from 8am to 8pm Monday to Friday, or 9am to 3pm on Saturday. Alternatively, complete our enquiry form and we will be in touch as soon as possible.