Debt Free in 12 Months

Bankruptcy is a way for individuals to clear themselves from debt and begin a fresh financial start. Other debt solutions should be considered first as there are serious consequences which cannot be avoided. 

The average bankruptcy term used to be between two or three years, but since recent changes to the law, most bankrupts are now discharged from bankruptcy within 12 months. 

Can You Really Be Debt Free in 12 Months? 

Although the average bankruptcy term is now 12 months, there are certain situations where the term will be much longer. Your Official Receiver can ask the court for an Income Payment Order, which means you will be asked to make payments towards your debts even after you have been discharged.

There are also certain debts that a bankruptcy order cannot cover such as student loans and debts as a result of fraud. 

Remember, there are other debt solutions which mean you can avoid bankruptcy, such as an IVA or Debt Management Plan. For free advice please contact the Debt Free team on 0808 131 0039.

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.)