OfficesOnward Chambers, 34 Market Street, Hyde, SK14 1AH
Unity CorpBankruptcy
What is Bankruptcy?
Bankruptcy is a way of dealing with debts that you cannot pay.
Becoming bankrupt is a very difficult decision but you might want to think about bankruptcy if you have no money to pay your debts, or have so little that it will take you years to repay them but it may cost you up to £680 to go bankrupt.
Once you have been made bankrupt, you don’t have to deal with your creditors directly as this will be done by your Trustee or the Official Receiver as they will make sure that your assets are shared out fairly amongst your creditors.
When the bankruptcy order is over, you can make a fresh start and the money you owe is written off. In many cases, this can be after only one year.
Examples of how bankruptcy could affect you:
- If you own your own home, it might have to be sold together with any luxury items of value you own.
- You may not act as a director of a company without leave of the Court. You also cannot be involved in the formation or management of a company without leave.
- There are some debts such as court fines and student loans that cannot be included.
- Your details will be listed in the Insolvency Register, which people can access on the internet.
Bankruptcy Help
Fees:
You must pay the court fee and deposit yourself, currently £680 per person (subject to some concessions).
Disadvantages of Bankruptcy
- All your assets of value, apart from those required for a basic standard of living, will be sold. This is likely, after a year, to include your house if there is equity.
- Any income you have in excess of that needed for your basic needs will have to be paid to your creditors for three years.
- Your job may be at risk: certain trades and professions will not allow you to work when bankrupt and you should check your employment contract or check with your HR department before making any decisions.
- You will not be allowed to obtain more than £500 credit unless you first disclose that you are bankrupt.
- Your credit rating will be affected (probably for some time after your bankruptcy ceases) and there may be other restrictions, such as having your bank and credit card accounts closed.
- Your bankruptcy will be publicly available on the Insolvency Register.
- Your credit file will be affected and your bankruptcy will remain on your credit file for at least six years.
Advantages of Bankruptcy
- Once the bankruptcy has come to an end, all debts are written off.
- Depending on your circumstances you may be debt-free in 1 year.
- No more contact from creditors.
Free debt counselling, debt adjusting and provision of credit information services are available from the Money Helper service an organisation set up by the Government to offer practical advice to those in debt.
CONTACT USOur Office
Our Office is located at Onward Chambers, 34 Market Street, Hyde, SK14 1AH.
CONTACT USOur Office
Our Office is located at Onward Chambers, 34 Market Street, Hyde, SK14 1AH.
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