Bankruptcy

You may be suitable for bankruptcy if you cannot afford to repay your debts when they are due.

You can apply online yourself, or your creditors can apply to make you bankrupt; however, you would need to owe them £5,000 or more for the creditor to do this. There is an application fee of £680 that can be paid in instalments online, though you cannot submit an application until the fee is paid in full.

Bankruptcy often only lasts for 12 months, and, if approved, creditors can no longer proceed with legal action against you. Interest and charges are also frozen, and your details will be listed on the insolvency register.

Please note that any valuable assets, including your home if you are a homeowner, may be sold to help repay your debts. Bankruptcy will also affect your credit profile where it will be recorded for 6 years.

But why choose bankruptcy ?

Debt discharge

Bankruptcy provides the opportunity for a significant portion or all of your unsecured debts discharged. This means you are no longer legally obligated to repay these debts, providing a fresh start financially.

Immediate relief

Upon filing for bankruptcy, an automatic stay is put in place. This legal provision halts most collection actions by creditors, including debt collection calls and lawsuits. This provides immediate relief from the stress and harassment of creditors.

Financial fresh start

Bankruptcy offers the chance for a financial fresh start, allowing you to rebuild your credit and financial strength. While bankruptcy does have consequences for your credit score, many people can work toward improving their credit over time with responsible financial practices.

Bankruptcy considerations

Assets

If you own a home or possessions of significant value, these items could be sold to help repay your debts.

Fees

There is a bankruptcy application fee of £680 payable, although this can be paid in instalments.

Payments

People in employment in the UK may be subject to an Income Payments Order. This means you may need to pay your disposable income into the bankruptcy for up to 3 years.

Credit Rating

Bankruptcy will be recorded and have a negative impact on your credit file for a period of six years.

Public Register

Your personal details will be recorded on the Insolvency Register which is a public record.

Employment

Bankruptcy may impact upon your employment; therefore, you should always check the terms of your employment contract before making an application. You are also unable to be a company director unless you have the permission of the court.

Debt Help UK

After receiving our help, a typical customer's debt would benefit from the below.
Lower monthly payment
Stop Interest & Charges
Only 1 monthly payment
Stop creditors taking legal action

Let us help you