- All your debts are written off, and you could be free of debt in 12 months.
- A fresh financial start
- Your living conditions will not change if you are in rented accommodation.
- Creditors will recognise that you will pay less than what you owe to them.
- You no longer have to deal with creditors yourself.
- If you are a homeowner you may lose your home, which may be sold to release any equity for the benefit of your creditors.
- After the costs of living have been accounted for, any extra income may become the subject of an Income Payments Order (IPO) requiring you to make monthly payments towards your bankruptcy for up to 3 years.
- Your future career prospects may be hindered, as there are a number of positions from which bankrupts are banned.
- Your credit rating will be affected and it might take a number of years to rectify.
- If you want credit in excess of £500, you will have to declare your status.
- The details of your bankruptcy will be advertised in local newspaper.
- There are certain debts that cannot be written off. These are fines, maintenance or child support, personal injury debt, and fraud
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