Can I Become Debt Free with Bankruptcy?
Bankruptcy will free you from your debts with creditors, but you must consider all the consequences seriously and explore potential alternatives.
- When you are discharged from your Bankruptcy Order, all of the debts included in your bankruptcy are written off.
- You should normally be discharged from bankruptcy within 12 months thus giving you a fresh financial start.
- (However, you may be subject to an Income Payments Order which means you will make payments into the bankruptcy estate for a further two years after being discharged).
- Creditors have to accept less money than is owed, and Bankruptcy will put an end to creditors’ phone calls and letters.
- Bankruptcy should only be a last resort as there are serious consequences that cannot be avoided. It is always important that you seek expert advice before declaring yourself bankrupt.
- All of your assets will be sold in order to repay some of your debt. This can include your home and your car.
- The only assets that you are allowed to keep are those which are required for a basic standard of living.
- Any spare income will be paid to your creditors for upto three years.
- Details of your Bankruptcy will be advertised in the London Gazette and can be viewed online at the Insolvency Service website.
- It may hinder your future career prospects as some professions will not employ someone who has previously been declared bankrupt.
- Bankruptcy could put your current profession as risk, as Bankrupts are not allowed to be company directors or practice in certain professions.
- Your credit rating will take years to rebuild.
- Certain debts cannot be written off, such as fines, maintenance or child support, personal injury debt and fraud.
How freedebtline Can Help
Whatever you choose to do – freedebtline offers advice and support to guide you through this difficult time. We’ll explain if there are alternative options available to yourself and if not, assist you in your bankruptcy proceedings.
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