Bankruptcy Advantages
Sometimes bankruptcy can be your only option for some people, but there are a number of alternatives, such as IVA or Debts Management which you should consider before making your final decision.
Advantages of Bankruptcy include:
- Your debt is written off with 12 months, so you get a fresh financial start after this time.
- As long as you keep up on your rent payments, you should still be able to continue to live there.
- No more phone calls or letters from creditors.
- Bankruptcy may be the preferred option if you do not have any assets.
In terms of solving debts, bankruptcy is an extreme solution, and you should always take expert advice from an Insolvency Practitioner.
Entering into an IVA may adversely affect your
credit rating for up to six years from the date of approval.
Your property will be protected within an
IVA but you may be required to release all or part of any equity during the
period of the arrangement.
Failure to complete the term of an IVA can
result in bankruptcy.
(In Scotland, a PTD is the equivalent to an IVA.)