If you are facing overwhelming debt problems but you do not qualify for an IVA then filing for bankruptcy may be your only option. If you are considering bankruptcy then our staff are able to provide you with independent information and support.

Bankruptcy is a method of dealing with debts that you are unable to pay. Becoming bankrupt is a way of freeing yourself from serious debt problems while at the same time ensuring that your assets are shared out fairly between your creditors. Bankruptcy is available to anyone subject to some restrictions.

The bankruptcy process begins with a bankruptcy petition being presented to the court. This petition can be presented either by yourself or by a creditor to which you owe at least £250. After receiving the petition the court can either issue a bankruptcy order, dismiss the petition, appoint an Insolvency Practitioner to deal with the debt, or if more information is needed the proceedings may be delayed. A bankruptcy order can be made even if you dispute or refuse to acknowledge it.

For a person looking to overcome debt problems bankruptcy has several benefits. The Official Receiver or a nominee will be appointed to deal with your financial affairs on your behalf. You will receive Court protection from any further debt recovery actions by your creditors. The bankruptcy will last for one year at the end of which you are able to start afresh with most if not all of your debts cleared.

Being made bankrupt does however have a number of negative consequences associated with it. For example any valuable assets including your home may be sold to repay your debts. Additionally the Bankruptcy Order will be publicised in your local newspaper and your credit rating will be affected making it more difficult to obtain credit in the future. As a bankrupt you will be restricted from certain professions including being an accountant, lawyer or company director.

I-V-A.org.uk is part of a group of Licensed Insolvency Practitioners who are legally able to prepare and manage IVAs from start to finish. As part of our service we are able to provide you with free impartial debt advice to help you find the best solution to your debt problems. To speak to one of our advisors simply call us on freephone 0800 054 50 43 or alternatively complete our enquiry form.