Bankruptcy FAQs

How long will I be bankrupt for?

In most cases bankruptcy lasts for a year, after which time you are discharged. However, if you are required to make monthly payments from your income to your trustee these will continue (usually for a period of three years). Details of your bankruptcy will remain on your credit file for six years.

Does bankruptcy have lasting consequences?

Yes, it does. It can affect your future ability to obtain services from banks, credit card companies and others. But it's not all doom and gloom. Talk to a Help with Debt Consolidation's partner about your individual situation and they'll advise you on what your future options may be.

How will bankruptcy affect me?

If you are declared bankrupt, you are no longer liable for any outstanding debts documented in the bankruptcy proceedings. This can give you peace of mind and alleviate stress. Your assets will then be shared out between creditors and you can make a fresh start. However, bankruptcy doesn't come without implications.

How will bankruptcy affect my employment?

Bankruptcy affects certain occupations and professions who may refuse to employ someone who is either an un-discharged bankrupt or has been declared bankrupt in the past. These include the Police, Prison Officers, Armed Forces, Solicitors, Accountants and others in the Financial Sector. Attitudes to financial difficulty amongst employees is certainly more enlightened than in the past, but restrictions remain.

Many large corporate organisations may ask potential employees if they have been declared bankrupt and may carry out background searches - this could also mean that promotion prospects could be affected.

Who would handle my bankruptcy?

The Official Receiver will act as your trustee in bankruptcy unless an Insolvency Practitioner is appointed. Your Trustee is responsible for looking into all your financial affairs and making a full report to your creditors. He or she may also make a report to court.

How can I be sure if bankruptcy is right for me?

This is a vital question. An IVA, or other debt solution, may be more appropriate for your individual situation, as opposed to bankruptcy. Do talk to one of our trusted partners first. It won't cost you a penny and will help you make up your mind.

How long will bankruptcy remain on my credit file?

Six years. If you apply for credit after that time, you may still have to declare that you have been bankrupt in the past.

When is an IVA a better debt solution than bankruptcy?

The simple answer is almost always, if an IVA really is an option for you. An IVA helps you avoid all the stigma and serious implications of bankruptcy, whilst also taking care of all your debts.

Of course, you'll have to keep up your monthly IVA repayments (usually over five years), but these are specifically set at a realistic level you can afford.

What if my circumstances change during bankruptcy?

You are legally bound to inform your bankruptcy trustees if your income increases at all during your bankruptcy. This includes any money left to you in a Will or in a redundancy payment.

Are all my assets sold off in the event of bankruptcy?

Yes, with very few exceptions.

What do I do after filing my petition for bankruptcy?

The Official Receiver will initially take over once a bankruptcy order has been made and will handle all aspects of your bankruptcy, including liaising with your creditors. You will be under a legal obligation to co-operate fully with him or her.

What happens after my bankruptcy is discharged?

You are free to apply for any credit or financial services you choose, although acceptance is not guaranteed. And remember, your bankruptcy will appear on credit searches for six years.

Will the same records be kept about me if I take out an IVA?

An IVA is kept on your credit record for six years from the date of arrangement. It is also entered on the individual insolvency register which can be searched by the general public. What we can say is that it is not advertised in the paper and your employer is not notified unless you choose to tell them.

If I declare personal bankruptcy but also own a business, what happens?

This applies if you are self-employed. Your business will normally be closed down and any employees will be made redundant. You will also not be able to be a company director again without court permission.

What if my combined assets are still not enough to pay off all my debts?

Declaring personal bankruptcy will still clear all your debts and protect you from your creditors. Even so, it should only be seen as the very last resort.

Can I rely on advice from a Help with Debt Consolidation's partner?

Absolutely. All our partners are independent and exist purely to help people in debt.

Call and you will speak directly to fully trained specialists with vast experience of dealing with debt problems and the various solutions ranging from bankruptcy to IVAs, re-mortgaging, debt management plans and more besides.

Plus, you'll have the added reassurance of knowing that the advice you receive is confidential and not guided by other interests.

For more information regarding Bankruptcy, call us now on 0808 163 9579 to speak to an advisor or complete the form below.

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