Seek freedom from Debt: Take Bankruptcy Advice
Bankruptcy advice is widely available from a number of specialist companies known as insolvency practitioners.
Seeking bankruptcy advice can be a meaningful way of dealing with the enormous stress of being chased by creditors, when you have no means to repay. However, best bankruptcy advice will always begin by telling you that bankruptcy should never be used solely to stop demanding creditors. Bankruptcy is an extremely serious step, and in addition, there are some debts that cannot be discharged, even when bankrupt.
When you enlist bankruptcy help, an adviser is likely to point out that filing for bankruptcy serves no purpose, if it leaves you no better off than before. Each individual case is different, but in taking bankruptcy advice you should receive an expert opinion as to whether bankruptcy is the right option for you.
Individuals who are unable to repay their debts are well advised to seek bankruptcy advice before making a decision, as bankruptcy may impose significant restrictions on the person declared bankrupt, in the future. An insolvency practitioner can give reliable bankruptcy information, pinpointing what these restrictions are likely to be in your case.
A petition for bankruptcy can be made by you personally, if you feel you have debts you will never be able to pay. A third party, for instance a creditor to whom you owe money, can also petition for your bankruptcy, and they can do this to recover a debt as low as £750.
Bankruptcy advice and bankruptcy information can be free of charge
Bankruptcy advice and bankruptcy information are available free of charge from your local Citizens’ Advice Bureau (CAB).
If you are advised to declare yourself bankrupt, you must lodge a petition with your local County Court. Your CAB or insolvency practitioner can help you prepare the bankruptcy information you must provide to the court: details of income, average monthly expenditure, and full details of your creditors and amounts owed.
The court fees in relation to a bankruptcy petition are around £140, and a further £310 for administration of your bankruptcy, if the court makes a bankruptcy order against you.
Alternatives to bankruptcy
When seeking bankruptcy advice, you will be made aware of various options open to you in creating your personal strategy of debt management. In addition to bankruptcy information, you may be told about an Individual Voluntary Arrangement (IVA), an agreement negotiated with your creditors which can help you if you are in a position to repay just part of your debt, over a 5-year period. Alternatively, you may be advised that a better solution for you would be a debt management plan.
Would you like to further investigate the bankruptcy option or other forms of debt management? Contact us online now by making a financial advice enquiry or ring freephone 0800 678 5929.
