Bankruptcy is an option for debtors with overwhelming debt, however, it is important that all other possibilities have been fully explored and the implications of bankruptcy fully understood before this route is taken. At Bailams, we have a wealth of practical and technical experience, we can advise on the best option for you.
Bankruptcy can apply to individuals, sole traders and partnerships.
Bankruptcy has advantages for those debtors without significant assets or surplus income.
In the main, bankrupts are permitted to retain domestic furniture, tools of the trade and a vehicle for work purposes. Pensions are not affected by bankruptcy.
A bankruptcy usually lasts for 12 months. After this time, the bankrupt is discharged, the debts are written off.
However, there are restrictions for the bankrupt moving forward. The bankruptcy usually remains on the debtor’s credit history for six years.
Bankruptcy involves the loss of all of significant possessions and most importantly the family home.
Any business operated by the bankrupt is closed and employees are dismissed.
Undischarged bankrupts are barred from holding directorships, many public offices and pub licences.
However, if bankruptcy is the appropriate route, at Bailams we are able to help you completing petition forms. We are also able to provide practical advice on what to expect from the practical implications of bankruptcy.
We recommend that debtors seek advice as sooner rather than later so that as many options as possible are available.
Please contact Bailams for clear and helpful advice, on a no obligation basis.