Bankruptcy should not be seen as your first port of call if you want to become Debt Free, as it is no longer the only way out of debt.
If you are struggling with your debt and your financial situation is becoming more of a problem, then you need to get expert advice. There are other ways to become Debt Free with avoid many of the negative implications of bankruptcy.
Please call Debt Free today on 0808 131 0039 to see how we can help. Alternatively fill in our Debt Free Test to see some of your options.
If you are considering bankruptcy then chances are you have high levels of unsecured debt spread over a number of creditors.
As an alternative to Bankruptcy, the Government introduced IVA legislation. IVAs give you the opportunity to pay back some of your debts to your creditors, but any debt that you cannot afford is automatically written off on completion of the agreement.
For an IVA you must have over £15,000 of unsecured debt. If you owe a smaller amount then you might want to consider a Debt Management Plan. It is a debt repayment scheme, like an IVA, but it is an informal agreement with your creditors and no amount of your debt can be written off.
Bankruptcy is a very public process, and the details of your bankruptcy can be found online and in your local newspaper. IVAs and Debt Management Plans avoid this as they are a private agreement between you and your creditors.
Although Bankruptcy will mean that you are debt free, you will no longer have any control over your assets or finances. So your home may be sold in order to provide some form of repayment to your creditors and any existing bank accounts will be closed.
Debt Free recommends that you seek advice from a practising Insolvency Practitioner before you make your decision.