Bankruptcy

Bankruptcy is a legal term used for an individual or business who cannot afford to pay their debts back to their creditors. Creditors may file a bankruptcy petition against a debtor in an attempt to regain all or part of what they are owed. If a debtor is declared bankrupt with debts, its will mean they will have to hand over their assets to their Trustee. This can include your savings, personal possessions like your car or form of transport and even your home. The Trustee, this can be a Bankruptcy accountant or a licensed Insolvency Practitioner, will then value your estate and possessions and look to sell them at auction to recover the debts.

Bankruptcy advantages

• Absolute peace of mind – you are no longer responsible for your debts.
• Possible discharge within one year.

Bankruptcy disadvantages

• You may lose your home or your assets.
• Obtaining credit in the future will be a problem.
• Your credit can be affected for up to six years after the bankruptcy has completed.
• You may struggle to open bank accounts and will have to disclose bankruptcy on some insurance requests.
• You cannot act as a company director.
• Your financial and personal details will be examined in court.
• You cannot trade under any other nameunless you inform everyone associated with your bankruptcy.
• You may not become a member or part of the local authority.

For further information, complete the contact form on the right.

NTF Financial Solutions Ltd. are the Insolvency Practitioners that will process and supervise your Bankruptcy. The insolvency service has produced a guide for people who are struggling with debt, which outlines each of the available solutions. For further information click here or complete the contact form on the right.