By Mr Bankruptcy
19th April 2021
Bankruptcy is a term relating to debt that most people have heard of, many associating it with negative connotations as a desperate last resort, when everything’s gone wrong. But fewer people know how it works or how it could actually be a sensible solution for dealing with your debt.
When might you consider personal bankruptcy?
If you are unable to see a way of clearing your debts, your financial circumstances are unlikely to change and you don’t have enough assets or equity in your home to cover your debts, bankruptcy may be the right solution.
In short, becoming bankrupt is a way for you to clear most types of unsecured debts. By selling assets of value such as your home or car, you can pay what you can and receive some relief on remaining debts. Usually, bankruptcy is declared by a court order initiated by the debtor. A record of bankruptcy will be placed on file for twelve months but after this, usually, you can make a new start.
However, before deciding to pursue the bankruptcy option, you must consider your particular circumstances.
What you should know about bankruptcy
Although the concept of bankruptcy, using your assets to clear your debts seems straightforward, you should be aware of the implications of being declared bankrupt:
Is bankruptcy right for you?
For more information on personal bankruptcy, you can read our Guide to personal bankruptcy in the UK. You can also get in touch with a specialist advisor who can help you understand how bankruptcy may be right for you or look at better alternative solutions.
James Rosa Associates
James Rosa Associates is a firm of debt advisors and debt adjustors. With a supportive, friendly and non-judgemental approach, we offer a full range of advice and professional services to individuals and business owners/directors who face unmanageable debt or who are involved in civil or commercial disputes. Our services include:
We are authorised and regulated by the Financial Conduct Authority (FRN665061) to work with clients to produce bespoke solutions to fit their specific circumstances.
Find out if you qualify for a free consultation
If you want to take the first steps to dealing with an unmanageable debt, or to bring a dispute to a swift and cost-effective resolution, contact James Rosa Associates, ring 0845 6807217 or email firstname.lastname@example.org to find out whether you qualify for a free consultation.
Please be advised that all views expressed in these posts are those of the author and not of James Rosa Associates ltd.