How do I become bankrupt?
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Including my credit cards and personal loan, I'm £14,000 in debt. How do I go bankrupt?
jonesy1
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
it can be relatively straightforward to declare bankruptcy, once you have allowed for the court fees - there are companies that can assist you with the entire process but they will of course expect to be paid.
having said that, before you go too far i would strongly suggest that you speak with someone from the citizens advice bureaux or consumer credit counselling service.
bankruptcy isnt a quick fix and shouldnt be entered into lightly.
it may prevent you from owning your own home in the future if you rely on needing a mortgage, will certainly make it difficult to obtain a bank account after you are discharged (as well as other unsecured credit). it could even impact on your ability to take out car insurance if you might rely on being able to pay monthly.
there are alternative options such as IVAs that might help to reduce your burden and although these too can have side effects in the future, they are not always as severe as the stigma attached to bankruptcy.
bankruptcy is very much a one-way street and once you have entered you can only go forward - never back and change your mind.
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having said that, before you go too far i would strongly suggest that you speak with someone from the citizens advice bureaux or consumer credit counselling service.
bankruptcy isnt a quick fix and shouldnt be entered into lightly.
it may prevent you from owning your own home in the future if you rely on needing a mortgage, will certainly make it difficult to obtain a bank account after you are discharged (as well as other unsecured credit). it could even impact on your ability to take out car insurance if you might rely on being able to pay monthly.
there are alternative options such as IVAs that might help to reduce your burden and although these too can have side effects in the future, they are not always as severe as the stigma attached to bankruptcy.
bankruptcy is very much a one-way street and once you have entered you can only go forward - never back and change your mind.
