Bankruptcies are currently in decline as more people in the UK look at alternative methods like IVAs and Trust Deeds.
Bankruptcy is one way of dealing with debts you cannot afford to repay. It is a court order that you can apply for if you have unmanageable debts. It may be the best way for you to free yourself from excessive debts but the decision should not be taken lightly.
For many people debt suddenly spirals out of control due to unforeseen circumstances such as relationship break ups, business problems, redundancy, sickness or unemployment.
If you find yourself struggling with phone calls and letters from your creditors demanding money you do not have it may seem like there’s nowhere to turn but in this situation bankruptcy may be the solution. Bankruptcy is legal protection for you the ‘debtor’. Being declared Bankrupt automatically makes it illegal for your creditors to harass you in any way, thus reliving you of the pressure.
As with all debt solutions there are some negative effects that make Bankruptcy a serious step to take and one that should not be taken lightly, the correct advice is very important, so always speak to a professional debt advisor before making any decision. You may be eligible for a Debt Management Plan or an IVA which could save you from bankruptcy.