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The outcome is Final and you will (in time) be free from all of the following debts:

  • Unsecured Loans
  • Tax and Vat Bills
  • Credit Cards and Store Cards
  • Catalogue Accounts
  • Any Unpaid Bills
  • Debt subject to County Court Judgments

Bankruptcy Can Reduce Financial Stress

We are not suggesting that bankruptcy is without stress; however negotiating with many creditor at the same time can be considered worse. Many people feel a burden is lifted when the bankruptcy Trustee takes control of their finances.

With Bankruptcy You Pay Back Less of the Debt

If you are made bankrupt, you may be required to make contributions from income for no more than 3 years. If an informal arrangement is agreed, (as in debt management) then the debts are repaid in full. In he case of a formal arrangement, (as in an IVA) you are normally required to make payments from income for 5 years and in applicable, remortgage your home to free up equity in the final year of the agreement.

Stops Creditors Chasing Payment

All creditors are bound by and must accept the Bankruptcy order, not just the one (or ones) petitioning for the bankruptcy. Whether they agree with it or not all unsecured debts are written off after bankruptcy discharge.

The other side of the coin

So you have read about the advantages of Bankruptcy but there are many more dis-advantages and in many cases there is another way out their stressful financial situation.

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