Bankruptcy

Bankruptcy is a debt solution which is to be considered when an individual is unable to repay their unsecured debts. However, it is often seen as the solution of last resort for people with money problems.

Bankruptcy facts

Statistics available for 2009/10 there is even more evidence that the trend for bankruptcy is on the increase. Let’s look at the figures released by quarters:

  • In the first quarter in 2010 there were almost 18,500 bankruptcies in England and Wales. This is an increase of around 7% compared to the last quarter in 2009.
  • In the second quarter of 2010 there were 14,982 bankruptcies in England and Wales. This again is a significant decrease on the same quarter in the previous year. The decrease is almost 20% overall.
  • In the figures published for the third quarter in 2009 the trend shifts. There were 35,242 personal insolvencies across England and Wales. This includes Bankruptcy, Debt Relief Orders and IVA.
  • Early figures for 2010 show that once again the trend is up with a 5% increase in people claiming insolvency.

It should be noted that not all Bankruptcies are instigated by the debtor, and that your creditors can apply to make you bankrupt where £750.00 or more is owed. Beware not all debts can be dealt with in bankruptcy.

  Bankruptcy
Will my debts be cleared within a fixed period that is agreed from the start?
YES
Will interest be frozen so that my current debts don’t get any bigger?
YES
Can I change my payments if I have an unexpected expense?
NO
Do I still have to deal with my creditors myself?
NO
Will this affect all of my assets?
YES
Are my creditors likely to accept less than I owe them?
YES
Will I avoid losing the home I own?
NO
Am I protected by law from my unsecured* creditors?
YES
Will my creditors stop chasing me for payment?
YES
Will my creditors consider that I’m trying to do the honourable thing over my debts?
YES
Do I keep control of the settlement situation?
NO
Is the procedure confidential, preventing others from knowing my situation?
NO
Does my partner have to know?
YES
*1
Will I avoid social stigma?
NO
Is the procedure administered by a licensed Insolvency Practitioner?
YES
Can my creditors be legally forced to go along with my chosen course of action?
YES

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Notes:

*1: This depends upon whether there are joint debts, or there is a property in joint names with your partner. Where there is a house in joint names with your partner, your partner will need to be made aware, because a ‘restriction’ will be placed on the Land Registry against the property which prevents its sale.

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08448 247 260

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