Bankruptcy
Bankruptcy
Bankruptcy is the last resort and is only advised in extreme circumstances.
Associated with bankruptcy:
- Financial "last resort".
- Will eradicate your creditors (at the cost of your credit rating).
- There is a cost implication to the legal proceedings.
When declaring insolvency there are issues that will affect you in the future, these include a negative effect on your credit rating and a restriction on being a Company Director. We can offer you help and support, plus all the information you need before making a decision.
If you decide that there is no other option and become a client, Action Today can offer you advice and guidance and will take you through every step of declaring yourself bankrupt or insolvent. We can complete all the necessary forms and paperwork for you to sign and will in extreme cases discuss the option and related fees for us to attend court at the date of your hearing.
Disadvantages of Bankruptcy
- Some advantages of going bankrupt are:
- The pressure is taken off you as you do not have to deal with your creditors
- You are allowed to keep certain things, like household goods and a reasonable amount to live on
- When the bankruptcy order is over, you can make a fresh start. In many cases, this can be after only one year
- Creditors have to stop most types of court action to get their money back following a bankruptcy order (but in some cases the bailiffs may still be able to take belongings away)
- The money owed an usually be written off
Disadvantages of Bankruptcy
- It will cost up to £700 in court fees and a deposit to go bankrupt (as of June 2011), plus we will charge an additional fee to help you complete the bankruptcy documentation.
- Whilst you are bankrupt you can not apply for more credit
- If you own your own home, it might have to be sold. However, you may be able to apply to your local authority for re-housing
- Some possessions might have to be sold, for example your vehicle and any luxury items you may own
- If you own a business (as a Sole Trader), it is more than likely that the Official Received will close down your business, dismiss the employees and sell off the assets
- Going bankrupt can affect your immigration status (where applicable)
- Bankruptcy cannot be kept private, details will be listed on the Insolvency Register, which people can access on the internet
- Even when you are no longer bankrupt, you could have another order, called a bankruptcy restriction order made against you
- Even throughout bankruptcy there are some debts, such as court fines and student loans that will never be written off. Also, secured creditors can still take action against you
- Your employment may be affected. It is advised that you check your employment contract: for example, if you are made bankrupt you can not be a Company Director
- There are some powers for the official receiver to take criminal action against you: for example, if you have committed fraud
Not sure which solution is right for you?
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What's the cost?
We make it plain and simple so you can be confident
Your first monthly payment covers our implementation costs. After that, our ongoing administration charge is 15%. This is included in your monthly payments - not added on.
