Advice about Bankruptcy      

The best advice on bankruptcy is to consider all the ramifications before deciding if bankruptcy is your best method for getting out of debt. The first reaction of many people with a severe debt load is to declare bankruptcy, but counselors offering this advice may not have your best interest in mind. Often, people in debt in the UK are much better off if they approach an alternative to bankruptcy, such as an Individual Voluntary Arrangement (IVA).

Once a bankruptcy order is made against you, control of all your assets is taken away from you and placed in the hands of a trustee. This trustee can sell your assets, including your home and automobiles above a certain value, which in itself is a good reason to seek bankruptcy legal advice prior to selecting this option.

Personal Bankruptcy Advice

If you receive free bankruptcy advice it should include full disclosure of the effect a bankruptcy order will have on your credit rating. For example, if you have been declared bankrupt and apply for credit in an amount more than £500 you are required by law to inform the lender of your bankruptcy status. Not doing so could result in the filing of criminal charges against you. Furthermore, with a personal bankruptcy future credit may be impossible to acquire for a number of years.

All bankruptcy proceedings are held in open court and the results are published in local papers and the London Gazette, which may negative impact your personal reputation.

Bankruptcy Advice on Employment

A bankrupt person is not allowed to hold certain positions such as a company director, councilor, MP, estate agent or magistrate. Types of jobs that will be difficult for a person declared bankrupt include the fields of security, law enforcement and accountancy.