Debt Management Plan
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Personal Bankruptcy
| Harrington Brooks can offer you good, practical advice on whether personal bankruptcy is a worthy, or indeed your best option. Talk to one of our trained consultants today on 0808 131 0040. |
You may file for bankruptcy if you owe any creditor(s) £750 or more and if you are unable to meet all the repayments on your loans and other responsibilities. Most creditors would prefer you to find out what alternatives you have, as they would not gain much from your filing for personal bankruptcy. This may be something to consider, as you may still be able to pay off most of your debts, and this could save you from filing for personal bankruptcy.
It is worth stressing again that you should not leave things until it has become too difficult to deal with. Our advice to you would be to seek help and assistance as soon as you suspect that your debts may becoming an issue. Our advice comes with piece of mind and we will do everything possible to help your financial situation.
We will endeavour to guide you guidance to get your finances in order. All you need to do is call us at Harrington Brooks today on 0808 131 0040 and speak to one of our qualified consultants.How does it differ from corporate bankruptcy?
Personal bankruptcy does not affect companies; however, company directors themselves may become bankrupt. Corporate bankruptcy has its own set of rules and differs depending on the type of company.
Personal bankruptcy lasts a maximum of 12 months and some bankrupts may receive a discharge after 6 months. Bankrupts may not apply for credit exceeding £500 without declaring their financial status. They should also tell their business partners and creditors they are bankrupt, otherwise they may face prosecution. And thirdly, undisclosed bankrupts may not be involved in a company’s running without a court’s permission.
Pros and Cons
One of the more straightforward pros is being free from debt. You’ll be able to make a fresh, stress free start, though some restrictions apply may.
The disadvantages of a bankruptcy may include the possibility of losing assets and closing down of a business. A bankruptcy may become expensive, as there are many fees to pay. Future creditors should be informed of the bankrupt’s status and there are certain positions that bankrupts may not hold.
