Bankruptcy Advice for England & Wales

Bankruptcy is a solution for someone who cannot pay their debts in England & Wales. You can become bankrupt voluntarily (when you do it yourself) or a creditor can make you bankrupt (when you owe them at least £750 and all other debt recovery avenues have been exhausted). Anyone bound by an IVA (the supervisor) can also be made bankrupt.

Advantages of bankruptcy

  • Bankruptcy usually lasts for one year, allowing a fresh debt-free start
  • Bankruptcy gives you protection from any further debt recovery action, such as wages arrestment
  • No financial contribution will be asked for if you genuinely can't afford to pay one
  • The Official Receiver or an Insolvency Practitioner deals with your creditors on your behalf
  • No fees to pay, other than court fee of £150 and a deposit of £450 towards the cost of administering your bankruptcy (in some circumstances the court can waive fees, and some charitable organisations may be able to help)

Disadvantages of bankruptcy

  • Any assets you own may require to be realised. This may mean that your asset is sold or a third party (usually a friend or relative) pays the value of the asset on your behalf to prevent it being sold. The money is shared between your creditors
  • Your credit rating will be affected for around 6 years
  • Your finances may be publicly examined in court
  • Bankruptcy may prevent you from doing some jobs
  • Your bank may close your account once you have been made bankrupt

More bankruptcy advice

For more bankruptcy advice for England & Wales, please contact us for some free, no obligation help and advice.

Campbell Dallas Debt Solutions - if you have debt problems, we have debt solutions.

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