LP - Apply For Bankruptcy - YourDebtAdvisor.co.uk

Find an alternative to applying for bankruptcy

You could reduce and consolidate your debts into 1 easy to manager monthly repayment and avoid bankruptcy.

May not be suitable in all circumstances. Fees and disadvantages may apply,
learn more here. Your credit rating may be affected.

Money Helper (formerly The Money Advice Service) is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. Please note that we have no affiliation with Money Helper.

Find out if applying for bankruptcy is suitable for you.

How much do you owe?(Required)

1. Speak to our team.

Our experienced advisors are waiting to help you start dealing with your debts.

2. We guide you.

Find out more about the debt repayment plans available to you.

3. Ongoing support.

Our advisors will support and guide you throughout your journey to debt freedom.

Find out if applying for bankruptcy could be the right way to deal with your debts.

As with any debt agreement, it’s important that you seek professional advice before committing.

What is bankruptcy?

Bankruptcy is a formal agreement between you and your creditors to repay what you can afford over a period of usually 12 months. Once this period has ended all outstanding debts are written off in full.

With bankruptcy, an ‘official receiver’ takes control of your debts and assets for you and liaises with your creditors.

As part of the bankruptcy application, a means test is carried out to see if you can afford even a small monthly repayment towards your debts. If you cannot, you will not need to make any repayments at all.

As with any formal debt solution, it is important that you speak to a bankruptcy professional to ensure that you fully understand the implications of going bankrupt.

Bankruptcy eligibility criteria

To be eligible for bankruptcy you must be unable to find a way to ever repay your debts.

Bankruptcy benefits

Below are the main advantages of going bankrupt. To learn more, please get in touch.

Debt written off – all debts included in your bankruptcy are written off.
No further creditor action – creditors are prevented from taking any further action against you.
No more charges or interest – charges and interest are frozen.
No creditor contact – your creditors will be prevented from contacting you further.
No repayments – depending on your financial circumstances you may not need to make any repayments towards your debts.

Bankruptcy considerations

Below are the main disadvantages of going bankrupt. To learn more please get in touch.

Selling your assets – your assets, including your home (if you own it) and vehicle may have to be sold to cover outstanding debts.
Details added to a public register – details of your bankruptcy will be entered into a public register.
Credit Applications – during your bankruptcy you may be restricted from applying for further credit.
Bankruptcy fee – there is a fee of £680 that needs to be paid to the Insolvency Service at the time you submit your application.
Restricted employment – you may be prevented from holding certain types of employment.
Credit rating – your credit record will be affected for 6 years.

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Some of the debts that we can help you with.

This is not a full list, please get in touch to see what other debts can be included.

Debts that can be included in an IVA.

This is not a full list, please get in touch to see what other debts can be included.

Frequently asked questions.

Is applying for bankruptcy right for me?

Bankruptcy is considered a debt solution of last resort due to the far-reaching consequences it can have on your daily life as well as your employment.

For example:

If you own your own home you may need to sell it so that any equity can be used to repay your debts.
Certain types of employment positions cannot be held if you are bankrupt, including being a director of a company or an accountant.
You will not be able to apply for credit without declaring to the lender that you are bankrupt, and
Details of your bankruptcy are entered onto a public register.

For a more details understanding of the impact of going bankrupt please get in touch with us today.

*How much of my debt will be written off?

The amount of debt that will be written off at the end of the term of your debt solution will depend on a number of factors, including the amount of debt and your monthly disposable income.

We assess each customer individually based on their circumstances and payments to the IVA are based on what is realistic and affordable.

Provided that you have abided by the terms of your IVA, any debt remaining at the end of its term will be written off.

To find out how much of your debt you could write off please get in touch via our contact form above or by calling us on 0161 660 2510.

Could there be an impact on my job?

Some professions, such as accountancy and solicitors, are prohibited from practising if you ae bankrupt.

In general however, there should not be any impact on your job but again, it is important to seek professional advice before committing to going bankrupt.

Will my credit score be impacted?

All debt solutions will have an impact on your credit score.

Details of your debt solution will be entered onto your credit record and will remain there for a period of usually 6 years.

What fees apply?

Although the initial advice that we offer is completely free, there is a fee of £680 that needs to be paid when you submit your bankruptcy application. This fee is payable to the Insolvency Service.

A real life debt solution example.

If you have more than £6,000 debt and can afford to make a regular monthly repayment towards clearing them, there is a good chance that an IVA would be a good solution for you.

With an IVA you make a single monthly, affordable repayment towards all included debts for, typically, a 5 year period. After this time any remaining debts are usually written off in full.

Repayments based on what you can afford and NOT what you owe.

A real life IVA example* –

Total debt – £15,461

Old repayment - £830

New repayment - £125

* We assess each customer individually based on their circumstances and payments to the IVA are based on what is realistic and affordable.

A friendly, experienced team of debt management specialists

We are available 6 days a week till late to help and guide you.