Bankruptcy is a debt solution for a person who is unable to pay their debts as they fall due.
It is a legal process that is suitable if you have little hope of repaying your debts in a reasonable amount of time. There are many implications associated with bankruptcy, so it is important that you seek appropriate insolvency advice.How can we help?
You can declare yourself bankrupt or your creditors can petition for your bankruptcy.
A creditor can make you bankrupt in England, Wales or Northern Ireland if you owe them more than £5,000.
If you live in Northern Ireland you can make yourself bankrupt by submitting an online application and paying the bankruptcy fees. You can do this at https://www.nidirect.gov.uk/articles/bankruptcy
If you live in England or Wales you can make yourself bankrupt by submitting an online application and paying the bankruptcy fees. You can do this at https://www.gov.uk/apply-for-bankruptcy
When you are bankrupt, your non-essential assets (property and some possessions) and excess income are used to pay off your creditors (those you owe money to). At the end of the bankruptcy period, most debts are ‘discharged’ (cancelled).
Bankruptcy usually lasts for about one year, however the effects of Bankruptcy can last much longer. Payments from your excess income may last up to three years.
Bankruptcy is a serious matter and is normally only considered as a last resort. However, for an individual with no means of repaying their debts, or who has little or no assets, bankruptcy can be the best option. Bankruptcy can enable a person or business to have a fresh start.
A Debt Relief Order is a formal insolvency process suitable for people who cannot pay their debts and who have no assets, a low income, no other access to debt relief and no prospect of their situation improving.
If people do have assets, or there is a possibility of an improvement in financial circumstances, a DRO is not an appropriate solution.
If you are in financial difficulties and you or your creditors are considering petitioning for your bankruptcy, contact Arthur Boyd & Company today for confidential and impartial advice on the options that may be available to you.
For peace of mind and a fresh start, get in touch today for free and confidential debt advice.