Going bankrupt will wipe away all secured and unsecured debts. It is suitable for an individual who typically owes a large sum of money; who is unable to meet their repayments; who does not own their own home; or has accepted that their few assets will be sold in order to satisfy the debt.
- Property such as a domestic dwelling, or other assets – and this may include pension entitlements – will be sold by the trustee in bankruptcy during the administration of the bankruptcy to repay creditors.A proportion of income is also paid to the trustee for a period of up to three years to pay back creditors.
- In most cases, bankruptcy will last for 12 months, which is typically a shorter period than an Individual Voluntary Arrangement.At the end of the bankruptcy period the bankrupt is ‘discharged’ and the remaining balance of debt due to creditors is written off. If an income repayment plan has already been instigated by then, it will nevertheless remain in place for its duration.
- Bankruptcy has its consequences and should not be considered an ‘easy way out’. While it does not have the same stigma attached to it as was the case historically, restrictions will apply for the period of bankruptcy and it may be necessary to declare the bankruptcy to an employer or professional body.
- Being specialists, MGA is able to look at the alternatives with anyone in financial difficulty; an Individual Voluntary Arrangement or Debt Management Plan may be a better alternative. We will be able to give you professional advice on what is right for you.
- MGA provide free no-obligation advice about bankruptcy. Our team is experienced, understanding and willing to take the time to listen to your individual circumstances.