Bankruptcy the pros and cons, advantages and disadvantages

Ashley Park Debt Solutions

Call Us

0800 043 3535

or from a mobile

0330 303 0038

Let Us Call You

Introducers

Broker Site

The insolvency service has produced a guide for people who are struggling with debt. This guide outlines each of the available solutions. You can download the guide by clicking the following link - In Debt? Dealing With Your Creditors. Please feel free to contact one of our experienced advisors to discuss any of the options outlined and to provide any recommendations of suitable products for your individual circumstances.

Bankruptcy - Advantages & Disadvantages

Debts are written off, with certain exceptions (explained in the Disadvantages section)
Creditors cannot take further action unless the debts are secured on your home or other property.
It allows you to make a fresh start after only a year.
You may be able to avoid having to sell your home if your spouse, partner or a relative can buy your share of its value after any debts secured on it have been paid.

What are the Disadvantages of Bankruptcy?

Your bankruptcy is entered on a public register and is advertised.
If you apply to the court for your bankruptcy, you will have to pay a court fee and deposit totalling £700.
You will remain liable to pay certain debts in particular student loans, fines and some debts arising from family proceedings.
Any business you have will almost certainly be closed down.
Your employment may be affected.
Certain professionals are barred from practising if they are made bankrupt.
You cannot act as a director of a company or be involved in its management unless the court agrees.
You will be committing an offence if you obtain credit of £500 or more without disclosing that you are bankrupt.
You may have a bankruptcy restrictions order* made against you for 2 to 15 years if you acted irresponsibly, recklessly or dishonestly.

Looking for a Debt consolidation loan?

Reduce your monthly payments with a debt consolidation loan

Reduce your debts With an IVA

If you have over £10,000 in unsecured debts that you are struggling to repay, then an IVA could help you write off some of that debt*. Find out about IVAs now.

Debt Management

Make your monthly repayments more affordable. Debt management plans can help you pay off your debts without going bankrupt. Find out more about DMPs now.

Facing repossession? Let us help

Are you facing repossession? Already been to court and due to be evicted? We can help. Get repossession help.

Settlement Services

If you have £1,500 or more of unsecured debt you can use our settlement service to help save you money. If we don't manage to save you anything, then the service is free! Click here for details.

Paying too much For your mortgage?

Find out how you can save on your existing mortgage deal by Clicking here