Bankruptcy is a legal process where your pre-existing unsecured debts will no longer be your responsibility and you are given the opportunity to rebuild your debt-ravaged credit file. Creditors can no longer harass you for payments and the stress and worry that comes with the burden of debt will be lifted.
Before making a decision to go bankrupt you must remember that this is a decision about your financial well being and it's imperative that you make a choice you are happy with, and are well informed of what will happen and what restrictions will be placed on you.
It is possible for you to petition for your own bankruptcy, however this does require prudence, patience and diligence. If you know someone that petitioned for their own bankruptcy successfully then asking for some advice is a good way to start. Gathering as much knowledge as possible will better prepare you for this process.
It is a safer option to have professional assistance when filing for bankruptcy. Clear Insolvency provide this service and we'll be happy to discuss this with you in detail when we have an idea of your circumstances.
It could be that bankruptcy is the most suitable debt solution for you.
You may hear that bankruptcy should be considered a last resort, and that you should try an IVA (Individual Voluntary Arrangement), IPP (Informal Payment Plan) or DMP (Debt Management Plan) first, but this isn't always suitable. What's right for you depends entirely on your circumstances as these are all solutions to the same problem, but tackled differently.
You may find that you would benefit from professional help in completing your Statement of Affairs and Bankruptcy Petition.
From the time that you decide to apply for a bankruptcy order, to the day that you are declared bankrupt, you may seek assistance in order to keep your creditors and bailiffs at bay. In addition, performing your own research into bankruptcy often results in receiving conflicting information, depending on the source(s).
Personal bankruptcy for Scottish residents is called Sequestration.
To be sequestrated you must owe at least £1,500 and either: one or more of your creditors must have taken you to court to enforce or demand you repay a debt or you must have been on a debt payment programme under DAS that has been revoked and one of the creditors in the DPP have been to court and obtained a decree on one of the debts.
You are immediately free from debt and will not be responsible for any of your pre-existing debts.
It is a fresh start for you and your family to start again and build yourself up from a position of strength. You are immediately protected from all your creditors who form part of your bankruptcy.
Clear Insolvency is trading name of Hamilton and Clarke Ltd.
Registered in the UK. Company no. 6465374. Consumer Credit License (UK) 612841
Clear Insolvency, 27 Old Gloucester Street, London, WC1N 3AX
