Bankruptcy
Debt is something that can happen to anyone, at any time. We understand the pressure and difficulties that you are facing and we can guarantee that you’re not alone. We’re ready to listen, provide guidance and help you find an ideal solution.
If you’re struggling to pay off your debts and need a fresh start with your finances, then the option of bankruptcy may be an ideal solution for you. This process is a quick, formal solution to your debt problems that writes off your outstanding payments completely.
Despite its relief, this option can have some negative consequences. Before you consider bankruptcy, it’s important to receive guidance on how it will affect you, and what alternative options may be available.
Talk to one of our experts today for confidential advice.
What is bankruptcy?
Bankruptcy is a formal insolvency solution for serious debt problems. The process means that, within a year, all your personal debts will be completely wiped. This process requires careful thought and specialist advice as it can have serious implications on varying factors of your life. Depending on your circumstances, this could include your home, job and personal assets.
How to go bankrupt
Anyone can declare themselves bankrupt on the UK Government website, but it is highly recommended that you seek expert advice and guidance from an experienced Insolvency Practitioner before you do so. This procedure is irreversible, and can result in negative impacts to release your assets and clear your debts. It’s important to ensure that you’re making the right decision.
To declare yourself as bankrupt, there is a fee of £680 that must be paid prior to submitting your application.
What happens if your creditors are making you go bankrupt?
If you owe more than £5000 to your creditors, they have the right to make you bankrupt if you’re unable to pay your debts. They can do this by either sending you a statutory demand, or enforcing a court judgement. If a creditor has proof they have attempted to use these methods in order for you to pay your debts but their attempt has failed, they can apply for you to become bankrupt.
If you’re currently faced with a statutory demand, it’s important that you receive advice quickly from one of our licensed Insolvency Practitioners. We’ll be able to further advise you on what your next best steps are, and what this can mean for you and your family.
What happens after you’ve declared bankruptcy?
After your bankruptcy application has been approved, you will officially be declared as bankrupt. This means that your name and details will be published in the Individual Insolvency Register and you’ll be subjected to follow bankruptcy restrictions. This means that you will not be able to:
- Borrow more than £500 (unless agreed with your lender once they’re aware of your status).
- Continue working as a Director of a company without the Court’s approval.
- Open or promote a new business without the Court’s permission.
- Manage a business using a different name.
- Work as an Insolvency Practitioner.
- Work in finance.
Once your status is declared, you may also find it difficult to open and use your bank account. It’s important that you discuss with your bank or building society before making the decision to go bankrupt to know if you’re able to continue using your accounts. In some cases, you may be able to use a basic bank account, or a prepaid debit card, among other options that are available.
What happens to assets once you’re declared bankrupt?
It’s possible that some of your assets may be sold in order to pay off some of the money that you owe. This may include remortgaging your property to release some of the equity, the selling of jewellery, caravans, leisure equipment and more. You will not be required to sell anything that you rely on, for example clothing, furniture or household equipment. You will not be required to release your car if you need it for everyday life or work.
Receive tailored, confidential advice from our licensed experts at Restart BTi
Bankruptcy can feel like a daunting and complicated process, but it is valuable for offering a fresh start to those who need it. To learn more about bankruptcy, and what it means for you, speak to one of our trusted advisors today. All conversations are confidential with tailored advice and guidance for your unique situation.
Simply fill out the short form below with your contact information and a date/time it’s best that we contact you on, and one of our expert practitioners will be in touch.
FAQs
Typically, bankruptcy debt lasts for 12 months, after which time your debts are formally written off. Although some, such as student loans, criminal fines and fraudulent debts, will remain active.
After 15 months, the details of your bankruptcy are usually removed from the Public Insolvency Register.
If you own your own home, your trustee or receiver has 2 years and 3 months from when your bankruptcy application was approved to decide what to do with any equity in your home. They have a deadline of 3 years to complete any home equity dealings.
6 years after filing for bankruptcy, your details will be removed from your credit file. However, bankruptcy details are filed in The Gazette and stay there forever.
If you file for bankruptcy and your debts are separate from those of your spouse, they will not be impacted. They are not responsible for any debts in which their name is not associated with.
A person is usually only responsible for their own debt unless they signed a contract or acted as a guarantor.
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Restart BTi
Suite 44 Dunston House
Dunston Road
Chesterfield
Derbyshire
S41 9QD
- 01246 959 388
- Fax: 03333 444 993
- Email: enquiries@restartbti.co.uk
Restart BTi is the trading name of Restart Business Turnaround Insolvency Limited, a limited company registered in England and Wales no: 11517419
Registered Office: Suite 42 Dunston House, Dunston Road, Chesterfield S41 9QD
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