Bankruptcy advice and help going bankrupt

Declaring bankruptcy in the UK

Within the UK there are a number of options for dealing with debt. Declaring bankruptcy is one of them. In recent times the stigma and consequences of going bankrupt has decreased, though this should not undermine its seriousness.

Although the number of petitions has decreased in recent months, I would expect this trend to reverse given the number of people in debt and the state of the economy. Another trend, that is perhaps unfortunate, is that declaring bankruptcy is becoming more expensive. The fees are increasing and more of your wages are taken by the trustee. This trend is not likely to reverse.

It remains a fact that the UK has one of the most forgiving regimes in Europe. Owing to the Enterprise Act an individual can receive their discharge within 12 months. I remember that I only had to wait approximately 7 months. The main reason for this was to allow honest people the opportunity to start afresh. This is particularly relevant in business bankruptcy.

What should you expect when going bankrupt?

When I was considering personal bankruptcy I remember the worry. With hind sight, despite the serious consideration that going bankrupt deserves, there is much worse that life can throw at you. It is impossible to determine what you should expect without understanding your situation but I think it is fair to say that declaring yourself bankrupt can be a worrying time. You will have to go to court and you will almost certainly face an investigation. That is enough to put the worry in to most people. Having said that, it is not all doom and gloom. At the end of the day your bankruptcy debts are wiped and with the correct information and advice it need not be as consequential as you first thought. It is no longer as public as it once was. For most the bankruptcy order will only be advertised in the London Gazette and recorded in the bankruptcy register.

The key to minimising the consequences of going bankrupt is information and advice. Plenty of information will ensure that you have an understanding of the procedure and good advice will explain how you will be affected personally and how best to approach it. This will also help to ensure that the process is as smooth as possible for you and your family.

Remember, if you have not already, look at all the debt solutions available. An IVA or something else may be more suitable.

Comparing bankruptcy and other debt solutions

Personal bankruptcy should always be compared to other debt solutions to ensure that it is your best option. When I went bankrupt I had little choice due to the state of my business and the level of debt I had as a result. Others will be more lucky and have an IVA or a debt management plan available as a solution.

If you too run a business then you will need to look at your options slightly differently. Your future will need to be considered as well as the viability of your business in its current form and with any necessary recovery options that you have available to you.

Where can you get bankruptcy advice?

Finding credible bankruptcy advice is easier said than done. Unfortunately there are a number of factors that make it more difficult than it should be. Firstly, professional help is expensive. Secondly, there are some organisations purporting to help you go bankrupt yet many of them are offering alternative solutions or offering help that is beyond their expertise. If anyone makes going bankrupt sound like a walk in the park then I can assure you it is not. It can become very complex.

Bankruptcy advice should come from a specialist. I remember when I needed help that it was very difficult to find an organisation with enough knowledge. In the end I paid a solicitor. I was lucky as I had the support of my family who paid for that help. Not everyone is so lucky. Having said that, looking back with the knowledge that I have now, the advice that I received for the money that I paid was pretty poor.

What bankruptcy information should you look for?

That is a good question and the answer is relatively simple. Firstly, do not go on binge for information in order to ascertain exactly how you will affected by going bankrupt in the UK. For that you need advice.

Instead, you should seek information that will reduce your stress and anxiety and guide you through the bankruptcy process. Understand exactly what is going to happen and read around the professional advice that you have been given. Important information that you will want to digest includes:

• The process and what is expected of you
• An overview of the consequences
• The significance of your interview with the Official Receiver responsible for investigating you
• Anything that your adviser suggests will attract additional consequences or further investigation
• Alternative solutions

There is an abundance of information presented on this website but please remember that it is no substitute for advice.

Bankruptcy bank accounts

Many people assume that you cannot get a bank account after bankruptcy. This is not true, bank accounts for bankrupts do exist. Visit the bank accounts for bankrupts page for more information.

Bankruptcy Forms

In the past it was possible for you to complete your bankruptcy forms online. If you want to go bankrupt they now have to be completed manually.