You should consider bankruptcy as an option if your financial situation is so grave that there’s little chance of ever being debt-free. If you choose to pursue a bankruptcy as an option, there is a high possibility that you will lose the majority of your assets, including your home and car. Other debt solutions should be considered and explored before settling on bankruptcy. Therefore, you should only regard this as your last option.
A bankruptcy order can be made for one of three reasons:
♦ You cannot pay what you owe and want to declare yourself bankrupt.
♦ Your creditors (the people or companies you owe money to) apply to make you bankrupt because you owe them £5000 or more.
♦ An insolvency practitioner makes you bankrupt because you have broken the terms of an individual voluntary agreement (IVA).
It is important to note that bankruptcy does not equate to debt-free. Debts such as court fines and student loans will not be “written off”. Therefore, it is strongly suggested that you seek professional and independent advice before filing for bankruptcy.
How we can help
Leston’s can provide generic guidance on whether bankruptcy is the best option for you, for individual guidance however we would refer you to an approved independent financial advisor who would take the lead in guiding you through the various options. For assistance simply click on the “Create a case” link at the top of this page to initiate a case.
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