What is Bankruptcy?
Bankruptcy is a formal insolvency procedure that may have long-lasting effects on an individual and should not be considered without serious thought.
Bankruptcy may be considered where existing debts far outweigh your existing income and assets with little prospect of paying it back within a reasonable timescale. After Bankruptcy your debts will be written off, however being Bankrupt may negatively affect your long term financial plans. You may lose control of valuable assets, and be required to make contributions from your income for up to three years.Continue to the next section How does bankruptcy work?