Frequently Asked Questions
Bankruptcy
What are the alternatives to bankruptcy?
If you believe you are in serious debt and normal debt solutions of looking at unsecured loans, secured loans, remortgages or debt management plans will not work for you there are three alternatives to bankruptcy which you may look to consider:
- Informal arrangement - The first method if you have not already taken this action is to write to all of your creditors to see if you can reach a compromise regarding the amount you pay. This will tend to be an informal arrangement for the first three months with an agreement to review every three months.
- Individual voluntary arrangement - A second method is a formal agreement (rather than an informal agreement) where you reach a negotiated compromise with your creditors. To assist you with this procedure you will need the support and assistance of an Insolvency Practitioner. They will work with you in the negotiation process and supervise any agreement put in place.
- Administration orders - A final method you could us if your debts are £5,000 or less and one or more of your creditors has a court order against you is an Administration order. Under this type of order you agree to make a regular payment to the court which is then passed onto your creditors. Provided you continue to pay the Administration order your creditors cannot take any action against you. Additionally you will also avoid any further interest and charges on your debts.
Who should I talk to before I go down the route of bankruptcy?
What are the alternatives to bankruptcy?
How do I petition for bankruptcy?
How much will it cost to make myself bankrupt?
Who will deal with my bankruptcy?