What is an Bankruptcy?
Thinking of just going Bankrupt to get it over and done with?
- Consolidate your debts into one plan
- Write off all unaffordable debt
- One affordable monthly debt repayment
- May not be suitable for all, fees apply in solutions we offer and they may affect your credit file.
So what is involved with Bankruptcy?
Going through Bankruptcy involves paying £680 (£683 in Northern Ireland) one off fee and you will be asked to contribute what you can afford for 3 years/36 months and the remained of the debt will be written off normally after 12 months.
In Scotland Bankruptcy is also known as Sequestration, costs £150 one of fee to the Accountant in Bankruptcy (AiB) you will be asked to contribute what you can afford for 4 years/48 months and the remained of the debt will be written off normally after 12 months.
A this is a form of insolvency this will go on your credit file for up to 6 years under a public notice.
Benefits of going through Bankruptcy?
- Interest, charges and debt collection activity will stop
- Debts are normally written off after 12 months
- You may be able to keep essential household goods
- You can do the whole application process online and pay the costs in instalments (England and Wales only)
- Debt collection activity stops
- You do not go to court
- A trustee deals with your creditors for you
Risks of going through Bankruptcy?
- You may have to sell assets like a home or car
- You may have make monthly payments for three years or four years in Scotland
- Bankruptcy is on the public Register of Insolvencies for at least five years. Sometimes longer
- It shows on your credit file for six years
- There are restrictions borrowing while bankrupt
- Bankruptcy could affect your rental agreement
- Your bankruptcy may be extended. This means it could last longer
- It might affect your job
