Bankruptcy: What is it and How it Affects Me?

This debt solution is available for residents in England, Wales and Northern Ireland

Bankruptcy is a legal process that involves writing off debts that individuals can’t pay. This type of debt solution allows your creditors to recover the debt through your assets. It is also a way for debtors to have a fresh start in terms of finances.

Depending on where you reside in the UK, bankruptcy procedure differs. In Scotland, bankruptcy is known as sequestration, and the process and fees are not the same compared to England, Wales and Northern Ireland. Though the process or procedure differs, bankruptcy can have the same impact in your life. It can affect several aspects, especially concerning your financial state.

The Adverse Effects of Bankruptcy

If you have valuable belongings or property such as a house, car of any items that you owe, these items are sold. The proceeds will go towards your bankruptcy.

Aside from your assets to be potentially seized, bankruptcy can affect your credit rating. Once it is registered on your credit file, it will be hard for you to obtain credits or loans.

In fact, declaring bankruptcy can as well impact your pension and business. The more it can be made worse since it will appear on the public register. This means anyone who wishes to conduct a credit check on you are likely to access your bankruptcy status.

Bankruptcy Help and Advice

Before you decide to file for bankruptcy, make sure you contact us. We can help you find out if bankruptcy is the best solution for you.

You can use our debt advice tool or contact us and speak to our debt experts. We will help you in choosing the best alternatives to knock down your debts.

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