- Bankruptcy is a form of indebtedness that writes off debts you can't afford to repay. When you're insolvent, your non-essential assets (property and possessions) and excess income are used to pay off your creditors.

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What is Bankruptcy?

Bankruptcy is a proper indebtedness route for individuals with unsecured debts that they cannot pay. Bankruptcy is often the last resort and can be used when no other alternate is suitable.
Once you are made Bankruptcy you have a duty to provide information to the official receiver and the defender, and attend their office as and when required.

Benefits Of Filing For Bankruptcy

IVA Debt Help certainly understands the stress faced by those considering bankruptcy, and you might not think there are any ‘benefits’ to it. While our Licensed Insolvency Trustees (LIT) always explore every option available to you, and are often able to find an alternate solution, there are, in fact, some benefits associated with bankruptcy. It is important to be aware of these as you ponder all of your options and discuss them with a licensed professional.
If, after exploring every debt relief option with an LIT, you decide to file for bankruptcy, you will be able to resolve your debt obligations in a comparatively quick period of time (compared to other debt relief options), allowing you to start rebuilding your credit sooner and putting yourself on track for a brighter financial future.

Who can apply for Bankruptcy?

If you live in England, Wales or Northern Ireland you can apply for bankruptcy if you have debts over £5,000.
England and Wales - If you live in England or Wales you can make yourself bankrupt by submitting an online application and paying the bankruptcy fees.
Northern Ireland -
If you live in Northern Ireland you need to apply to the court.
Northern Ireland -
If you live in Northern Ireland you need to apply to the UK Money Advice

Other benefits to filing for bankruptcy include the following:

  • Stop harassing phone calls from creditors.
  • Freeze interest payments.
  • No more legal action against you.
  • Bankruptcy eliminates your debt.
  • Wages are no longer garnished.
  • Some assets are protected in bankruptcy.
  • Bankruptcy can cost less.
  • Other solutions, such as debt consolidation loans or a debt management plan, often cost more than bankruptcy as you will have to pay back the full amount owed, plus interest.
  • If you’d like to know more about filing for bankruptcy, contact your local IVA Dbt Help office to speak with a Licensed Insolvency Trustee.
0203 687 1054