Declaring bankruptcy is an option you can consider if you are insolvent i.e. you have debts which you cannot possibly repay. People often think that bankruptcy is something that companies and businesses go through when they run into trouble. In fact, this is not correct. The bankruptcy procedure is actually used for dealing with individual people's personal debts.
If you are declared bankrupt, the responsibility for repaying your debts will be taken away from you by the Court. You are protected by law from any further creditor action against you. For example, your creditors are no longer allowed to contact you and demand repayment of money. They are not allowed to add further interest or charges and cannot take any further action against you in the Court to recover money they have lost.
We may be able to help you avoid bankruptcy - there are alternatives to becoming bankrupt and you should be absolutely sure that declaring bankruptcy is the best solution to your problem before you do.
At Royal Exchange we provide a confidential and free bankruptcy advice service. Call us today or simple fill in our "Request a Call Back" form on this page and we will call you, lines are open 9am - 7pm Mon - Fri and 9am - 1pm Sat: 0800 028 4422
Not necessarily, we provide a range of alternative solutions that could prevent you from such a serious solution as bankruptcy. Bankruptcy has a lasting effect and should only be considered as a last resort.
Is Bankruptcy right for me?
Firstly, bankruptcy is very serious and should never be taken lightly. Our experience is that we are a very proud nation, in embarrassing situations we hide our feelings or try to make things look easy when times are hard. Only consider bankruptcy when you have sought the advice from a professional who can explain the advantages & disadvantages of such a solution. In the UK there are a number of alternatives to bankruptcy that may offer a better solution for you.
Once the Bankruptcy Order is made by the Court then the Insolvency Service (also known as the Official Receivers) or a Private Insolvency Practitioner will be appointed to pay off debts using your assets (belongings). - Click Here for more information
Bankruptcy is a fresh start, a way of dealing with debts that you cannot pay. However it should not be rushed into - be sure to get advice before you take this drastic action.
Not all debts are written off - you cannot avoid secured debts (for example mortgages), court fines or debts from certain court orders, money owing to the Child Support Agency and student loans granted after March 1999, amongst others.
After the Order is made...
If you rent a property, your landlord may be informed.
Royal Exchange are fully authorised to provide advice on all matters relating to personal bankruptcy. We employ qualified and licensed specialists who can guide you through the whole process.
If you are considering declaring bankruptcy or you would like to hear more about its alternatives call our debt helpline on 0800 028 4422. Alternatively complete the enquiry form and one of our impartial debt advisors will call you back.