Bankruptcy
Merits:
Bankruptcy can be an effective way to deal with a debt problem. The consequences of doing so for a relatively small debt however are in most circumstances an over reaction to a debt problem. As with all debt solutions there are though positives and negatives to weigh up
Advantages
- Depending on your assets your may be a discharged bankrupt in under one year.
- If you have disposable income which can be paid to your creditors you can sever all requirements to pay your creditors in three years.
- You will stop going further into debt and chasing phone calls are also likely to stop.
Disadvantages
- It will be difficult to get even simple forms of credit into the future (installment plans on car or home insurance).
- You will only be able to get bank accounts which do not offer you any credit facilities.
- Your credit rating will even after the bankruptcy prevent you from benefiting from wider forms of credit.
- Obtaining a mortgage through a high street lender will be in most circumstances impossible.
- Your future employment prospects may be compromised as employers look negatively upon your bankruptcy.
- You may have lower levels of self esteem over a long period of time as a result of the bankruptcy.
Use our FREE Credit Report to see if you are eligable for an IVA.
Bankruptcy: Main
Bankruptcy: Criteria
Bankruptcy: Considerations
Bankruptcy: Costs
Bankruptcy: Merits