Mike Weir, the SNP said: “After four years, Farepak victims have been left with pennies while the administrators have walked away with millions, and this by no means is an isolated case.”

He added: “People are actually dying before the insolvency gravy train comes to a halt. Part of the problem seems to be that the industry is largely self-regulated.

“What’s more, there is no independent complaints investigation procedure or ombudsman to adjudicate on malpractice – there are no questions over fees or delays.
“Just like (regulation of) the banks, current UK insolvency regulation has failed.”

However, the insolvency industry want to put a stop to any “misconceptions” and argued that the staffs are highly qualified professionals who are entitled to be fairly paid.

However, declaring bankruptcy should be a last resort after trying for alternative debt solutions and seeking debt advice. Once you declare yourself bankrupt it will have several implications, which can stay on your records for six years and you may find it difficult to secure credit during this period.

If you are convinced that bankruptcy is your best option then you need to apply and a bankruptcy application will be sent to you. These long and detailed forms need to be filled out and fees may apply.
For more information on going the distance and becoming bankrupt, get in contact with Money Advice Group on FREE phone: 08000 773 604

Bankruptcy as a debt solution should always be considered as a last resort. Once you go down the road of bankruptcy you can be debt free in 12 months!

How to declare bankruptcy

Any individual who is in overwhelming debt may voluntary declare bankruptcy, on the basis that they cannot afford repayments and consider themselves insolvent.

However, if you file for bankruptcy then you will have to pay the court administration fees for the process. If you are made to go bankrupt then these fees will not apply to you.

The process of going bankrupt

Once you have declared bankruptcy then you will have to follow a process to get the ball rolling, so to speak.

First a petition for Bankruptcy and Statement of Affairs Forms will be required to start the bankruptcy proceedings.

A presentation of forms will then be followed to be shown at court. All administration fees (relevant) will have to be paid at this time.

Hearing- Once you are legally declared bankrupt.

Summary

Bankruptcy will get you debt free and you can relatively start a new after. A lot of implications will apply once you have been declared bankrupt. But it also has its benefits.

Walt Disney went bankrupt after he lost a building deal. But he managed to recover. You may have also heard of Kerry Katona who went bankrupt, and is now on the road to recovery. It’s not the end of the world if you go down this road.

Declaring bankruptcy will have several effects on your life. You will have to fill out bankruptcy forms in a court, and you will have to pay money for administration costs.

Once you have entered into bankruptcy this will be published in the press, which can be a social stigma on your name. You will also have to hand over any valuables, which can be sold and shared equally between creditors.

Holding certain job titles will be affected, especially in the public sector.

Opening a new bank account may be denied by the banking association, and you will not be allowed to have an overdraft.

These are just a few of the bankruptcy list which will impact your life once you declare bankruptcy in the UK.

Bankruptcy in business (Liquidation)

If your business has gone bankrupt, then liquidation will apply. This means the company will have to stop trading and its assets will be returned for cash or “liquidation” to pay off debts. It will be the termination of a company, although the business may survive.

How long do I have to pay off a trust deed?

Trusts deeds tend to last over three years, depending on the amount of debt you carry. However once the agreed amount of time for paying your trust deed is over, any remaining debt you still owe to creditors will be written off and you will be debt free!

The borrowed money is causing a deep concern, as people sink into severe debt problems. The research findings from a charity called Shelter discovered that ‘withdrawing cash on a credit card to pay housing costs was the “worst possible course of action” for householders.’ The study was conducted over the past 12 months, taken from 2,202 people.

The Council of Mortgage Lender (CML) commissioned a report in November revealing that a small proportion of households had used credit cards to pay off mortgage loans.

“Some 11% have used a credit card to pay their bills at some point. Despite recent sensationalist news headlines, only 2% of mortgagors have ever paid their mortgage on a credit card, with half of these paying off the balance at the end of the month,” the report said

Consumers are being warned to not use credit cards to pay off bills, because of the huge amount of interest rates the cards are associated with. Using credit cards is an easy and rapid way into terrible debt problems.

If you need debt advice and help, get in contact with Money Advice Group on FREE phone: 08000 773 677

Why choose bankruptcy?

Bankruptcy has its benefits and they include:

• Freeing you from overwhelming debts, giving you a fresh new start, although some restrictions will apply after the 12-month contract
• All your assets will be shared out equally between your creditors. This will include any property you own and anything of value
• Going bankrupt can provide you with peace of mind

Why bankruptcy should be a last option?

Bankruptcy is a serious matter, just like your debt situation right now. You can’t go into bankruptcy light-hearted, you need to be prepared, informed and armoured for what can and possibly will happen. Bankruptcy has social stigma attached to its name, but that’s not all…

• Once you go bankrupt your situation will be published in the press
• Any business, or property you own will be closed
• You will lose any valuable assets including your home, life insurance and possibly your pension
• You will be deterred from obtaining any credit over £250 without asking permission from the lender
• A building society, creditors, landlord and any other officials will be informed of your financial situation

For more advice on going bankrupt get in contact with Money Advice Group. Bankruptcy is serious financial predicament and should be used as a last option.

If you are trying to pay off credit card debts then this is probably the solution for you. Why? Well, credit cards carry with them a much larger interest rate than average secured loans from banks. Therefore, a UK debt consolidation can help cut the interest and get you a step closer to being debt free.

However, before you apply for debt consolidation get in contact with Money Advice group for advice and alternative solutions. Debt consolidation like all debt solutions has its pros and cons. For professional financial advice contact FREE phone: 08000 773 637

You cannot afford not to utility switch this year with the VAT rise, soaring gas and electricity prices… But here at Money Advice Group you take away the stress and find the cheapest gas and electricity bills for you. It’s that easy.

Save time and money by letting us do that hard work for you. For more information on getting cheap gas and electricity call us now, or get in contact through by e-mail. Don’t waste time, save money now with Money Advice Group.

Once you enter an IVA, if your full debt has not been paid off in the legally binding five-year period, then your debt will be classed as settled.

However, if you choose to enter an IVA through Money Advice Group then you will be asked a series of questions whether or not this debt solution is right for you. An IVA is not a debt Management Plan, and it comes with its own set of pros and cons, which need to be carefully read before any agreement is made.

If you are interested in knowing more about IVA or other debt solutions, then get in contact with Money Advice Group. We are the UK’s leading financial specialist- solving debts on a daily basis. Call us on FREE phone: 08000 773 637