Clear Insolvency provide debt solutions for UK residents living here or abroad. We specialise in providing assistance to those wanting to clear their debts and file for personal bankruptcy, but can also provide suitable alternatives to bankruptcy, such as an IVA or debt management plan.
If your debt has become unmanageable then bankruptcy is an effective solution immediately freeing you from debt and giving you the chance to have a fresh start.
If you haven't got any assets to protect such as a house, savings or an expensive car (over £2500) and if your occupation isn't affected, then bankruptcy may be more suitable for you than an IVA.
Following bankruptcy your creditors are not allowed to contact you for any previous debts as they are no longer your responsibility. There's no threat of bailiff action either.
You will be bankrupt for 12 months, after which you are automatically discharged and are in a position to rebuild your credit file. Much like an IVA, your credit rating will be affected in the future, but over time it will improve.
Bankruptcy does not mean that you can't have a bank account or ever have a mortgage. Nor does bankruptcy mean that you can't get credit again, however one should hope that after going through this process you would do your best to avoid having to apply for bankruptcy again.
As part of our service we handle everything pertaining to your bankruptcy. The only thing you'll be expected to do in the entire process is to complete a short questionnaire for us, so that we have details of your income, expenditure, creditors, and other related information, as well as handing in the documentation, that we complete for you, to your local County Court.
We can help stop your creditors from harassing you between now and the date of your bankruptcy, as well as help with any Court action your creditors attempt to bring against you. We'll make the bankruptcy process as stress-free as possible.
Once your Bankruptcy Order is approved your creditors can no longer contact you for the debts you owed, as you are no longer responsible for them. You will have a clean slate, without the mounting debts looming overhead.
Following your bankruptcy we are on-hand until you are discharged (usually 12 months later) if you have any questions.
Scare mongering regarding bankruptcy can be enough to put someone off - even if it's the most suitable solution for them to clear all of their debts.
The truth is, bankruptcy is just another form of insolvency, much like an IVA, and the option that's best for you depends on your circumstances.
You will be discharged after a maximum of 12 months and possibly even sooner depending on your circumstances (some people are discharged after 6-8 months). All of your unsecured debts will be written off by bankruptcy and none of your creditors will be able to pursue you for them anymore.
The worst outcome if you don't have any assets to protect is that you may have to pay a percentage of your surplus income to your trustee for 36 months into what's called an IPA, but this is usually much less than you would be expected to pay in either a Debt Management Plan or an IVA and for a much shorter period. In addition, the money you pay towards an IPA goes directly to your creditors, whereas with an IVA or DMP you will be also be paying the firm a monthly contribution for setting it up.
Not everyone obtains an IPA following bankruptcy, and it is dependent on your income and expenditure. Once we have an idea of your finances we can let you know how you will be affected.
If you are struggling to manage your debt an IVA could be suitable. In an IVA your repayments are based on what you can afford and in return the creditors will stop all interest charges and any further action against you.
If you have at least £15,000 of unsecured debt owed to three or more different creditors; but have a regular income and could afford to put at least £200 a month into an IVA, then you are in a position to be completely debt free after 5 years.
An IVA also allows your creditors to receive more money back than they would if you were to apply for a Bankruptcy Order. An IVA can also act as a safeguard to losing your home, which is particularly important if there is equity in the property, as you would lose this in bankruptcy.
If you're struggling to keep up with your monthly repayments then a Debt Management Plan is a possible solution for you. Debt Management Plans are most effective as a short term solution and for debt amounts under £12,000, otherwise you could find yourself making repayments for many, many years.
If you know you'll be more financially stable in the near future, or you're in a position to pay off your debt if your repayments were lower, then a Debt management Plan will help ease the strain from your creditors and sort all of your repayments into one monthly repayment.
Creditors normally welcome a debt management plan as it ensures that they will regularly receive repayments from you. Maintaining your payments ensures that your creditors will not apply for your bankruptcy.