Bankruptcy can make you debt free in 12 months
Are you struggling to pay off your debts? Are you feeling overwhelmed and hopeless? You’re not alone. Millions of people are in the same boat. But there is hope. You can get out of debt, but it’s going to take some work. Read on for information on how to get started.
What is bankruptcy?
Bankruptcy can be a path to clearing debts, it is a legal way to declare your inability to pay your creditors. If you have debts you cannot repay this could be a viable solution for you. Within bankruptcy you will stop paying your creditors and creditors can no longer chase you for outstanding payments. For people going into bankruptcy it can provide a fresh start for debt that could not be repaid.
Bankruptcy can be done voluntarily or can be actioned by the creditors you owe money to.
What do your creditors have to abide by?
- A successful bankruptcy means you will be discharged within 12 months.
- Once discharged, all eligible debts are written off.
- Legal action against you stopped.
Pros and Cons of Bankruptcy
Pros
- All debts are written off to give you a fresh start.
- NO further action can be taken against you from the creditors you owe money.
- Creditors can no longer contact you regarding the money owed.
Cons
- Owned assets can be seized as part of the bankruptcy process, this includes property and vehicles.
- Your bankruptcy is recorded on the public ledger.
- Bankruptcy leaves a mark on your credit history which can be detrimental for finances going forward.
- Bankruptcy might be detrimental to working within some professionals, for example legal and finance.
More Information About Bankruptcy
Before considering bankruptcy to clear your unsecured, unpayable debt we should look at all other options, bankruptcy may or may not be the right move for you. By using insolvency advice you will be able to come to the best solution for you. You can begin this process by using our free solution finder.
IVA
A solution for people with over £6000 worth of debt, you must also owe more than one creditor. An IVA is a legally binding agreement which can help write off up to 81% of debts over a 50 – 60 months period.
Debt Management Plan
A Debt Management Plan or DMP, is an informal agreement between you and your creditors to pay back lower priority debts, this will reduce your monthly outgoings to an affordable figure each month.
Bankruptcy
Bankruptcy is a formal solution designed for those who physically cannot repay debts. Bankruptcy is often viewed as the last resort but can be a good solution for those who cannot make any repayments.
Don't know where to start?
No need to worry – we’re here to help you figure it all out.
Explore The Latest Articles
- Unlocking Financial Freedom: A Deep Dive into the Bankruptcy Proceedings
- Navigating Bankruptcy Pros and Cons (UK)
- Bankruptcy Debt Relief: Your Guide to Rebuilding Financial Freedom
- Debt Insights: Exploring Scotland’s Trust Deed Process
- Mastering Debt: A Closer Look at a Protected Trust Deed
- The Trust Deed Handbook: Unlocking the Secrets of Financial Security
Explore Popular Debt Articles
- How To Find the Best Online DMP For Your Situation
- Best Free Debt Help UK: Effective Debt Solutions
- Debt Relief Orders and Bankruptcy Debt Relief: What you need to know
- How UK Debt Management Companies Can Help You Get Out of Debt
- Debt Help UK: How to Get Out of Debt and Reclaim Your Financial Freedom
- 12 Habits for Effective Personal Debt Management Plan
The Money Advice Service is a free and impartial organisation, created by the Government, with the goal of
providing debt counselling, debt adjusting and credit information services to those in need. Individuals can
get professional free advice on how to manage their financial burdens by visiting www.moneyadviceservice.org.uk
