What is bankruptcy?

Bankruptcy is an option that often has to be considered when you cannot pay your debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year).

How does bankruptcy provide debt help?

Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings:-

• free you from overwhelming debts so you can make a fresh start, subject to some restrictions
• make sure your assets are shared out fairly among your creditors

The main advantages to bankruptcy are:

	For the person involved, bankruptcy provides relative peace of mind and possible automatic discharge after one year (or less in some cases)
	or the creditors, bankruptcy allows a full investigation of the debtor's affairs to be carried out

What are the minimum criteria for bankruptcy?

• Can't afford to pay debt
• No assets

How do I start a Bankruptcy?

Although bankruptcy has a bad stigma and is publicly advertised, it should be considered when dealing with individual insolvency cases. However bankruptcy is just one of several options to be considered when you cannot repay your debts. If you are ever faced with the prospect of bankruptcy you should always look at alternatives as soon as possible such as an Individual Voluntary Arrangement or a Debt Management Plan.

Speak to a Direct Debt Solutions advisor free on 0800 015 3135 and we'll advise which debt solution would best suit your debt problems or take the Express Debt Test now and find out which solution is best for you.

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