Bankruptcy is a word that strikes fear in most individuals but to those experiencing financial distress they it can help them get back on the straight and narrow.
If you feel you can’t pay your debts, then electing to make yourself bankrupt is one of a number of solutions, which also include:
- Individual Voluntary Arrangements (IVA)
- Debt Relief Orders (DROs)
Once you apply to be bankrupt an ‘adjudicator’ for the Insolvency Service will decide if you should be made bankrupt.
It will cost £680 to apply to become bankrupt; however, this fee can be added to a person’s debts.
It is important to remember that once bankrupt:
- Your assets can be used to pay your debts
- You will have to follow the bankruptcy restrictions
- Your name and details will be published in the Individual Insolvency Register.
After 12 months you will usually be discharged from your bankruptcy restrictions and debts. However, assets that were part of your estate during the bankruptcy period may still be used to pay off debts.