Bankruptcy can be the perfect solution for some people's financial problems
If you are in debt, you can apply for bankruptcy, which could help you handle the situation. You will no longer have to worry about your creditors - instead, the Official Receiver will control all your assets and handle your debts.
While bankruptcy is not your only option if you are in serious debt, it could be the right choice for you. Consider the following pros and cons when making your decision before talking to bankruptcy solicitors:
Advantages
Any money you owe out will be written off if you go bankrupt, and your creditors will almost certainly have to stop any court action they have taken to recover their money. This will help to take a lot of the pressure off you, alleviating the stress and anxiety associated with unmanageable debt.
You might worry that bankruptcy will mean you lose out on all your assets; however, you should be able to keep a lot of your property, including enough money to get by and some of your household goods. When your bankruptcy order has been completed - which often takes just one year - you should be able to get back on track without the bankruptcy haunting you.
As a result, bankruptcy can be the perfect solution for some people's financial problems. However, do not apply for bankruptcy without considering some of the potential drawbacks.
Drawbacks
When you decide to go bankrupt, you might have to spend up to £700. If you choose to use bankruptcy solicitors, this cost will be higher, although your final losses could be reduced.
Homeowners might have to sell their house, drivers might have to sell their car, and other expensive items you have bought might be sold off to pay your creditors. You will also be unable to apply for any additional credit while you are bankrupt. Business owners will likely see their business shut down, their employees fired and their assets sold off. If you're struggling with court fines and student loans, bankruptcy might not be the right solution, as these debts will not be paid off.
You should also check what will happen to your employment status and consider where your career is going, as some businesses and sectors will refuse to hire someone who has declared bankruptcy. You may find your immigration status has been damaged.
Complying with the Official Receiver is vital - if you fail to do so, such as by hiding assets, you might find a Bankruptcy Restriction Order is made against you. This could last for as long as 15 years and will significantly restrict your finances.
Some people feel shame about their debts and financial difficulties, so the fact that bankruptcies are made public could also be considered a drawback. People will be able to read your details in the Insolvency Register, and some individuals have even seen the details of their bankruptcy published in the press.
If you're unsure about going bankrupt, then speak with bankruptcy solicitors in Blackburn for more advice.
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