Alternatives to Bankruptcy
Bankruptcy is a serious decision that should not be taken lightly, it is a very extreme option however if you are having severe financial difficulties, it could be the right choice for you.
Before considering this as a route, you should be fully aware of what this decision is and the consequences that come with filing for bankruptcy. If you would prefer to gain invaluable advice from one of our advisors and speak to a real person about your situation, call us for chat and we can make the necessary steps together, whatever path you chose.
What is bankruptcy?
Bankruptcy is a practical way of dealing with excessive amounts of debt that you can’t afford to pay back. It should be regarded as a last resort as it will negatively affect the future of your credit rating and claims:
- You will be required to give up your assets, including valuable possessions
- You will lose any interest you may have gained on your property
- If you are running a business you will most certainly lose it and will have to dismiss any/all employees
How does it work?
- A court has to make a bankruptcy order which comes about after a petition is put before them
- The petition can be placed either by yourself (known as a debtors petition) or by one of your creditors (known as a creditors petition)
- The order can be made even if you chose to ignore the proceedings and/or disagree with them, once the process has begun you must fully engage with it
- Provided you have all the required information and fees and depending on logistics, we could have you petition prepared within just a few day
- A court hearing date is set, you will be required to attend a ‘closed’ court session, typically just you and the bankruptcy clerk. Having signed the relevant paperwork, they will get sent to the judge having signed the relevant paperwork, they will get sent to the judge who will then make the order and declare you bankrupt
What are my alternatives?
If you are in a position to consider your options, there are much more preferable alternatives to bankruptcy. These come in the form of an
- Individual Voluntary Arrangement (IVA)
- Advice with your debt management or a Debt Management Plan
- Trust Deeds (Scotland only)
- Or simply if you need Debt Help and Advice
All these options are much easier to deal with than bankruptcy which should be viewed as a last resort. For more information on each, please view the relevant pages on our website and feel free to fill in our contact form for a next day response or if you’d like to talk to a person you can call us on Freephone 08002 800 492.