Going bankrupt is one option for clearing your debts and making a fresh start, but it can have serious consequences. Therefore, bankruptcy should only be considered as a last resort, once all other options have been explored and exhausted.
In bankruptcy, an appointed Trustee will take control of all your assets. The Trustee has a duty to realise them and use the funds to pay your creditors.
In bankruptcy you are allowed to keep essentials for living and tools of your trade. However, any valuable cars, furniture and jewellery will all be sold. If there is equity in your property, then this will also be realised. Your bank accounts may be closed and your credit cards stopped. There are restrictions placed on you, which may affect the type of work you can do and you will be unable to act as a company director during bankruptcy. The Trustee may also seek a contribution from your income if you are in regular employment.
For confidential advice and to discuss your options call us on 0800 0141 130.