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Bankruptcy

Advice Debt specialise in the administration of Individual Voluntary Arrangements (IVAs). Should you not meet the criteria for an IVA, we will refer you to one of our trusted third parties for further advice.

Bankruptcy is often a last-ditch effort for those faced with the harsh reality of unmanageable debt, but it can be a powerful means to wipe the slate clean and start fresh financially.

What is Bankruptcy?

Bankruptcy is a formal insolvency process which results in all of your qualifying debts being written off; you may be suitable for this if you cannot afford to repay your debts as and when they fall due.

You can make an application yourself online, or your creditors can apply to make you bankrupt; however, you would need to owe at least £5000 for the creditor to do this. It is important you receive advice before considering this option.

How long does Bankruptcy last?

Bankruptcy usually last for 12 months which is referred to the moratorium period. During this period, you may have some restrictions placed against you. Bankruptcy can be extended in certain circumstances where you have a restriction order – this is usually if you have been dishonest during your application. Bankruptcy will be recorded on your credit profile for 6 years from the date it is registered.

Advantages and Disadvantages of Bankruptcy

There are several key points that should be taken into account before making the decision. Be sure to do your research properly in order to fully understand what this option entails so you can make an informed choice.

Advantages

Disadvantages

What is the actual cost of bankruptcy?

The fees in Bankruptcy are as follows.

The total cost is £680 which is split in to two.

  • £130 – adjudicator fee
  • £550 deposit (fully refunded if the petition is rejected)

The bankruptcy fee must be paid in full before you can petition for bankruptcy. You can pay in full or pay in instalments via the government site.

You will not be required to make any further payments towards the debts involved in your bankruptcy, however, you must keep up the payments to your household expenditure items such as your Rent / Mortgage, Council Tax and Utility Bills.

Why choose Advice Debt?

We can help you.

We all know how difficult it can be to manage our finances when we’re juggling debt and an ever-changing financial situation. That’s why we are here for you today offering expert advice that will put your mind at ease! We’ll work with what matters most, getting out from under the load of persistent debts so they don’t continue weighing down on every aspect of life.

Advice Debt Top Tips

Do I really need to buy this?
Avoiding debt can be a challenge in our modern world, where it's easy to get overwhelmed by all the temptations of spending. To stay on track with your finances, take some extra time before big purchases and ask yourself if you truly need that item.
Make budgeting a good habit
Mapping out and keeping track of your spending is essential for financial stability and success. Developing a budget can help you save money, recognize potential overspending habits before they start, as well as protect against unexpected expenses. Mastering the practice of creating an effective budget plan will go long way in helping to improve your overall credit rating.
Knowing your credit score
An excellent credit score is essential for any individual looking to access financial assistance. Without this metric, lenders may deny borrowers mortgages, car loans and other financing options; even something as simple as a phone contract could come at an immense price with the wrong rating. Therefore, it's important that you understand how your credit score can impact your life in various ways - from getting approved for major purchases to making sure you are paying reasonable costs on everyday transactions.
Borrow or save?
Deciding whether to save or borrow can be a difficult choice that carries lasting consequences. Saving may mean having less cash on hand in the present, but potentially avoids financial trouble down the road. Conversely, borrowing provides quick access to funds now; however if payments are not made in full and on time it could create prolonged problems with debt repayment. Ultimately, saving is often considered the safer option for making major purchases.
Have I checked the interest rates?
Before taking the plunge and borrowing money, take a look at that all-important APR. Keep in mind interest rates can vary dramatically - so make sure you research what sort of additional cost is involved with taking out your loan to ensure it fits within your budget!
Switching your credit card
Take advantage of low-interest credit cards to save yourself some money! Doing the research, you may even find a card with 0% APR - however this won't last forever. Make sure that if you switch providers and get one at zero percent interest, make it your priority to pay off debt during that period or else once it ends, interest rates will be added in full force.
Saving for a rainy day
Don't let debt be a factor in your future plans. A smart money move is to start putting away just a little bit each week - every penny counts! For example, squirreling £5 per week adds up over time; by the end of one year you'll have saved an impressive total of £260 (and if placed into savings that could grow even more!).
Don’t bury your head in the sand
Don't let your dilemma fester. If you find yourself in trouble, seek out professional advice to get back on the road to financial freedom. Advice debt services are well-equipped with experts who specialise in helping people resolve issues quickly and discreetly – so don’t hesitate to reach out for guidance!

Committed to providing debt information & solutions

Start with our 3 quick and easy steps

Step 1

Complete our Online Form

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Our form is user-friendly and is easy to complete.

The first step always feels like the hardest, but you’ve come to the right place.

Step 2

Talk to the Experts

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Tell us about your situation, and we’ll tell you exactly what help you’re entitled to.

We’ll inform you about what solutions you qualify for, and answer any questions you may have along the way.

Step 3

Take Action today

No obligation service

We know that debt is daunting, but after speaking with us, we can put together a personal action plan to put your mind at ease.

We’ll help set things up and support you in dealing with your debts, for however long is needed.

Let's get started

We've already helped 1,000 people this year

Our team of experts help thousands of families every year across the UK get their finances back on track.

Is Bankruptcy right for you?

We can discuss your eligibility.

Prefer to speak later?

We will offer guidance, support and a solution at a time that suits you.

*To find out more about managing your money and getting free advice, visit Money Helper, an independent service set up to help people manage their money.

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