Alternatives To Going Bankrupt

Struggling to repay your debts but feel bankruptcy is too drastic?

  • Do you run out of money with a week or more to go before the next payday?
  • Have you maxed out your credit cards just to cover living expenses?
  • Are you regularly missing repayments?
  • Are you constantly budgeting but still can’t meet your monthly repayments?
  • Does the amount you owe seem to go up each month as interest and charges are added on to the balance?
  • Does the prospect of being debt free, or even just in control of your debts seem like it’s getting further and further away?

Do you need a way of dealing with:

  • Council Tax Arrears
  • HRMC Debts
  • Credit Cards
  • Overdrafts

  • Unsecured Loans
  • Payday Loans
  • Mortgage Shortfalls
  • Hire Purchase Shortfalls

Just complete the form on the right and our system will analyse your circumstances and advise you if you are likely to qualify for bankruptcy. In addition on completing this form you will qualify for a Free Confidential Bankruptcy Telephone Consultation.

Free Confidential Assessment

Our free assessment will cover:

  • The pros & cons of bankruptcy for you
  • What are the alternatives to bankruptcy
  • How bankruptcy will affect you home
  • What will happen to the equity in your home
  • What will happen to your car
  • What other assets could be affected by going bankrupt
  • Who will be notified of your bankruptcy
  • If there is likely to be an Income Payments Agreement/Order

Whether you decide that bankruptcy is the right option for you, or you qualify for an alternative solution then we will hold your hand through the entire process to ensure everything runs as smoothly as possible and there are no unexpected circumstances. Bankruptcy can be a relatively simple process, or it can be highly complex dependant on your individual circumstances.

Professional Advice

If one or more of the following questions apply to you then you should seek professional advice and we would strongly urge you to contact one of our bankruptcy specialists before you consider bankruptcy as an option.

What will happen to my home if I go bankrupt?

If you are a homeowner then bankruptcy needs to be carefully assessed to avoid the risk of losing your home in bankruptcy.

As a tenant some private landlords may have bankruptcy clauses in their lease so you may find some landlords will not accept you as a tenant, again you should seek professional advice regarding how bankruptcy may affect your home.

I have mortgage arrears can I include these in bankruptcy?

If you have mortgage arrears and no significant equity, or negative equity in your home and you are willing to loose your home you could structure your bankruptcy to include a voluntary repossession in order to trap the secured debt within the bankruptcy and write it off. Alternatively putting your unsecured debts into bankruptcy may free up enough money each month for you to be able to agree a repayment plan to catch up with your mortgage payments.

My home has been repossessed and I have a mortgage shortfall can this be included in my bankruptcy?

If your home has already been repossessed then any amount still owing on your mortgage or secured loans will usually become unsecured debt (you no longer have the property to secure them against).

If the shortfall has been realised (the mortgage company have disposed of the property and have an amount that is still outstanding after they’ve been paid for the property) then it can be included in the bankruptcy, if it has not be realised (the home is awaiting auction or resale) then the mortgage company can be added to the bankruptcy as a contingent creditor and any shortfall once it is known can be included in the bankruptcy.

This is a potentially complex area and getting it wrong could mean any mortgage or secured loans you have survive the bankruptcy and you still owe them even after you have been discharged.

I have a car/vehicle on finance what will happen to this in bankruptcy?

Some finance companies will have a bankruptcy clause in their agreement which means the car will be repossessed upon bankruptcy regardless of circumstances (even if you are fully up to date with the agreement).

Generally speaking any vehicle you own will be seen as an asset and the Trustee of your bankruptcy will want you to realise the value of any assets you own to contribute to the bankruptcy. If you owe finance on your vehicle then there may be an argument it is not an asset but if the repayments are high then it could be argued that all or part of those repayments should be contributed to the bankruptcy.

This is a potentially complex area of bankruptcy and if handled incorrectly could result in the loss of your vehicle and/or a significant income payments order.

Can council tax arrears be included in bankruptcy?

Council Tax arrears are one of the debts that can survive bankruptcy if not handled correctly i.e. even though you have gone bankrupt the debt is not written off and you will still owe and need to repay the money even after you are discharged from your bankruptcy, therefore it is essential that and Council Tax arrears are handled correctly in bankruptcy to ensure they are included in and written off by the bankruptcy.

Can my HMRC debts be included in bankruptcy?

Tax debts to Her Majesty’s Revenue and Customs are one of the debts that can survive bankruptcy if not handled correctly i.e. even though you have gone bankrupt the debt is not written off and you will still owe and need to repay the money even after you are discharged from your bankruptcy.

Therefore it is essential that any HMRC debts are handled correctly in bankruptcy to ensure they are included in and written off by the bankruptcy.

I am self employed, can I go bankrupt?

If you are self employed or a company director it is essential you get professional advice before going bankrupt.

I am a company director, can I go bankrupt?

If you are self employed or a company director it is essential you get professional advice before going bankrupt.