What are the Advantages of going Bankrupt?
The advantages of personal bankruptcy are quite simple! Bankruptcy is viewed as a ‘Fresh Start’ ‘A new beginning!’ An opportunity to write off the past learning from what has happened and transporting the positive skills and experiences you have gained and applying these to the future. When considering whether or not to go bankrupt you should always look at what have you got to lose.
Even for those people who are asset rich, but who have liabilities personal bankruptcy can be the fastest way out of debt. You will need to be fully aware of the consequences of your actions if your circumstances are particularly complex but we are happy to assist in getting to the bottom of the issue and providing options. Call us on 0800 5977 977 or 01425 600129 for a chat with one of our experienced advisers.
We often come across people who have submitted their own personal bankruptcy petition, then call us when they have a problem!The fact of the matter is that unless you know what you are doing, it really is in your best interests to seek professional advice.
We have been in the industry for 14 years and know exactly how to address every issue and can help you with personal bankruptcy – there are no circumstances that we cannot assist with. Our advisers are generally older and ex-financial services. They do not work from scripts, which means they are actually listening instead of ‘talking at you’. We will place a support network around you and even write to your creditors if needs be.
Alternate debt solutions like IVAs & Debt Management plans tend to drag for years. Without being negative towards Debt Management and Individual Voluntary arrangements there are some critical facts that need to be mentioned.
Fact: A high percentage of those who are currently in Debt Management Plans are in them because they applied for a loan and were refused, and were then channelled into a debt management plan. In addition, over the last 10 years or so IVA companies have also bought debt management companies because people who are refused an IVA could enter a debt management plan. They would then build up a repayment profile in order that they be entered into an IVA. These organisations started in the North of England which is where the majority of the debt houses are located. An IVA is a process which is stamped by the court and anyone who enters an IVA is on the Insolvency Register.
However, there is no national data base or public register for Debt Management plans. Debt management plans have become increasingly popular with those who have assets but do not wish to enter a formalised repayment plan. Debt Management plans are very flexible. The problems with DMPs have arisen from unscrupulous providers who have not managed the client files properly and the client ends up in a worse predicament than was originally the case. There are some really good Debt Management providers who are government backed (CCCS and Pay Plan) who do not charge a fee for their services. Bankruptcy, on the other hand, completely removes the pressure of having to negotiate with your creditors.
One of the plus points with Personal Bankruptcy is that it removes the problem of having to deal with Bailiffs and debt collection companies. The moment you receive your bankruptcy order, you are not only protected but are essentially debt free. The process involves having a telephone interview with the Official Receiver who will administer the bankruptcy. For the duration of the bankruptcy you should look at or consider the Official Receiver as your financial guardian.
Personal Bankruptcy allows you to make a fresh start. The moment the bankruptcy order is made, you will achieve relief from pressing creditors. Dependent on your circumstances, you will be automatically discharged from bankruptcy anywhere between 6 and 12 months.
The majority of assets that people believe they will lose in bankruptcy, they can actually keep in most cases, i.e. low value cars, household goods, etc. For expert advice concerning personal bankruptcy please call us for a chat on 0800 5977 977 or 01425 600129.