Bankruptcy is a legal process where your pre-existing unsecured debts will no longer be your responsibility and you are given the opportunity to rebuild your debt-ravaged credit file. Creditors can no longer harass you for payments and the stress and worry that comes with the burden of debt will be lifted.



Before making a decision to go bankrupt you must remember that this is a decision about your financial well being and it's imperative that you make a choice you are happy with, and are well informed of what will happen and what restrictions will be placed on you.

It is possible for you to petition for your own bankruptcy, however this does require prudence, patience and diligence. If you know someone that petitioned for their own bankruptcy successfully then asking for some advice is a good way to start. Gathering as much knowledge as possible will better prepare you for this process.

It is a safer option to have professional assistance when filing for bankruptcy. Many firms provide this service and would be happy to discuss this with you in detail when they have an idea of your circumstances.

It could be that bankruptcy is the most suitable debt solution for you. You may hear that bankruptcy should be considered a last resort, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, but that's not necessarily correct.

Of course your creditors want you to try these debt solutions first because it ensures they still get repayments from you, but what's right for you depends entirely on your circumstances as these are all solutions to the same problem, but tackled differently.

What sets bankruptcy apart from the other debt solutions is the potential to wipe off 100% of your debt and have you discharged from bankruptcy within 12 months (if you haven't been bankrupt previously). Obviously, once discharged you no longer have the bankruptcy restrictions placed on you.

In general, those who benefit from entering the protection of a bankruptcy order are:

* People with no assets,

* People living in either rented accommodation or with friends and family,

* Those whose livelihoods would not be lost or affected by Bankruptcy

There's no risk of bailiffs coming round and taking any of your stuff! Once you enter into the protection of a bankruptcy order creditors can no longer harass you for your debts as they are no longer your responsibility. You can keep the tools of your trade, your car (providing it's not over ?2500), household goods, clothing, bedding and furniture.

If you own your home or have a car worth ?3000 or more then these may be seized.