Bankruptcy Advantages are considerable for the basic reasons that firstly it is often seen as the fastest way out of debt. It will bring an end to bailiff visits and ongoing creditor pressure such as harassing phone calls and letters demanding payment.
In our opinion it should be the first option that people should look at because it clearly outlines your financial affairs and the reasons how you have ended up in the position that you are in.
This is an obvious option if you have no assets and an income that is equivalent to your reasonable living costs. to other debt solutions, which often drag on for years as is the case with Debt Management Programmes (DMPs) and Individual Voluntary Arrangements (IVAs).
A key summary of bankruptcy advantages might be described as follows:
- Bankruptcy is now done online and does not require a court appearance
- All of your debt is instantly written off
- Bankruptcy lasts for a maximum period of 12 months after which you are discharged
- You keep household possessions and personal effects
- If you are an artisan, you keep the tools of your trade
- Properties in negative equity are no longer lost in bankruptcy.
- On the other hand, if you choose to give up your property, you will not be liable for any shortfall once it is repossessed and sold
- You can keep vehicles valued up to approx. £1000 provided these are required for work purposes
- There are usually no issues around obtaining a bank account
- Your name no longer appears in local newspapers
- Once you have entered bankruptcy Bailiffs are no longer able to approach you, they have to deal with the Insolvency Service.
The bankruptcy advantages can be likened to winning the lottery for some people. It is a survival tool which is freely available to UK citizens who have unmanageable debt problems. Conditions surrounding the process have improved considerably over the last 14 years and this makes the UK an attractive place for bankruptcy tourism.
Feel free to call us for a chat about your circumstances on 01425 600129.