Personal Bankruptcy Solutions
At Bankruptcy UK we specialise in assisting those with unmanageable debt and offer Personal Bankruptcy Solutions, expertly guiding them through the process. With well over 25 years of experience in both the Debt and Financial Services sectors, we have the vision to see beyond the obvious, think outside the box and provide you with individual positive solutions.
Our Team are all experts in their field and we understand the concerns associated with debt problems and the stress associated with incessant calls, letters and constant badgering. We will keep these people at bay while finding the right solution for you.
What, then, is the right debt solution? To establish this, we need to understand the basics of the four main players:
Debt Management Programmes
- Ideally suited for those with smaller debt levels of around £5,000 to £7000 who can only manage smaller monthly payments.
- Will keep creditors at arm’s length and interest is frozen for a limited period of time.
- They are informal arrangements which can be walked away from without any notice.
- They are temporary by nature and rarely pay off the capital.
- People considering a DMP should also examine Debt Relief Orders, as these liquidate the capital.
Debt Relief Orders
- Often described as ‘Mini Bankruptcies’, a DRO is a court-sanctioned order which liquidates debt totalling less than £20,000
- They are arranged through your local CAB
- The criteria are strict and only those with limited income and few assets will qualify
- This is a much better solution than a DMP as there is only a one-off £90 fee and no monthly payments. The cherry on top is that the debt is permanently liquidated
Individual Voluntary Arrangements (IVAs)
- Much touted and much maligned five year court sanctioned debt solutions that can prove expensive
- The essential difference between an IVA and a DMP is that the debt is ultimately paid off under an IVA, though at a huge cost.
- IVAs promise to use ‘Government legislation to wipe out up to 60% of the debt’ yet much of those ‘savings’ are added back in fees.
- The monthly payments are often prohibitive and are subject to continuous review
- IVAs are designed to protect those persons with businesses, especially if they wish to retain their status as Directors, as well as those with assets, including properties with equity, expensive vehicles, share portfolios, etc
- However, they are often recommended to all, including those living in rented accommodation and holding down everyday jobs. For people who have few assets, IVAs might not be the correct solution
- Is now done online and no court appearance is required
- Ideal for those with few assets and holding down everyday jobs, as there is essentially ‘nothing to lose’.
- Lasts for just 12 months, though people are often released earlier.
- Personal effects and household goods are not affected.
- No longer published in local newspapers.
- No problem with having a bank account.
- Affects the credit rating much the same as an IVA, though recovery of the credit rating is faster, as IVAs last for 5 years whereas bankruptcy lasts just 12 months.
- People are able to get mortgages as soon as three years after discharge providing there has been no financial issues in the interim.
- Few jobs are affected by the bankruptcy. Solicitors and Financial Team would not be able to practice, but jobs like the NHS, Office and Council workers and those working in shops and factories are not affected.
Should you decide that personal bankruptcy is the right option for you, we will:
- Guide you through the process step-by-step
- Complete an accurate income and expenditure to ensure there is no monthly payment following a bankruptcy
- Submit the application online
- Provide ongoing support, including after bankruptcy (which is important)
Feel free to call us for a confidential chat on 01425 600129 and we will talk you through the options and find the right solution for your particular circumstances.