Bankruptcy Process

The process of declaring yourself bankrupt is a very public one, and we recommend that you should try and seek out other alternatives first. Alternatives to bankruptcy include debts management. 

If you have a house or items of value, then bankruptcy is severely not recommended. The process of bankruptcy means that you are no longer in charge of your assets and they can be sold to pay back part of the creditors debt. 

In order to be declared bankrupt you will have to go to court. The petition for bankruptcy can either be from yourself, called a debtors petition or where creditors take you to court, a creditors petition.

An Income Payments Order could be applied for which will force the debtor to pay a monthly sum towards their bankruptcy, even after they have been discharged.

For further information and bankruptcy advice, please contact Debts Management directly on 0808 131 9112. 

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.)