BANKRUPTCY
Bankruptcy is a legal process designed to help individuals who are unable to repay their debts. It can lead to the cancellation of most of your debts, giving you a fresh start. However, it involves a legal process and certain conditions must be met.
Benefits
- Debt collection, interest and charges on your debts will cease..
- Most debts can be written off after 12 months, subject to meeting the conditions of your bankruptcy..
- You may be eligible to retain essential household goods and some assets, depending on the circumstances..
Risks
- Your assets, including your home or car, may need to be sold to repay creditors.
- You may be required to make monthly payments from your income for up to 3 years, based on what you can afford.
- Obtaining credit will be challenging while you are bankrupt, as this will be recorded on the public register and affect your credit file for up to 6 years.
- Your bankruptcy may be extended if your financial situation changes or if you fail to meet the requirements .
- It could affect your current or future employment.
A bankruptcy application require fee costs £680, including thee application fee of £130 and the bankruptcy deposit of £550.