Bankruptcy - The Cons

Debt Free believe that Bankruptcy could only be an option as a last resort as there are many 'cons of bankruptcy' which cannot be avoided. Below offers you some examples, but it is always important that you seek expert advice before declaring yourself bankrupt.

Debt Free - Bankruptcy Implications

• All of your assets will be sold to your creditors in order to repay some of your debt. This can include your home and your car.
• The only assets that you are allowed to keep are those which are required for a very basic standard of living.
• Any spare income will be paid to your creditors.
• Details of your Bankruptcy will be advertised in your local paper and can be viewed online at the Insolvency Service website.
• It may hinder your future career prospects as some professions will not employ someone who has previously been declared bankrupt.
• Bankruptcy could put your current profession as risk, as Bankrupts are not allowed to be company directors.
• Your credit rating will take years to rebuild.
• Certain debts cannot be written off, such as fines, maintenance or child support, personal injury debt and fraud.

Before you commit yourself to bankruptcy please give the Debt Free team a call on 0808 131 0039 as there are other debt solutions which might be more suitable for your situation. 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)