The Pros and Goes of Declaring Yourself Bankrupt

It is a shame that in the current economic climate, we hear of more and more people going bankrupt. It sounds like a terrible thing to some people, but others think that it is just a way to get out of paying what you owe.

When you do declare yourself bankrupt, all of your assets will be sold and the value shared out among your debtors. You will also have to stop using and bank accounts, credit cards etc that are associated with the business that you are declaring bankrupt.

While you are in the process of bankruptcy you will not be able to get credit for more than £500. You will not be able to be the director of a company, an insolvency practitioner and there are some jobs where you could be sacked as a result of the bankruptcy. You can be self-employed or in a partnership and most employers will continue to keep you on.

If you accumulate any debts after you are declared bankrupt then you will have to repay these yourself but all other debts will be taken over by the bankruptcy creditors with the exception of student loans, court fines and child support.

If it is a business that has gone bankrupt then any property or assets will be taken. If you are personally bankrupt then your estate becomes bankrupt and will be taken with the exception of any items you need to continue with your work and basics your family will need to comfortable in the home such as furniture, bedding, clothing etc.

When you become discharged from the bankrupcy, you will still need to pay certain debts off. These include anything you owe for personal injuries, debt accumulated through fraud and child support lump sums or costs.

The bankruptcy details will have to be declared to future employers as well as lenders if you are looking for financial help and so it could have a big impact on your future. You may not be able to get the jobs that you want or be able to borrow money so you may never be able to have a mortgage, car loan or anything like that, which could make things very difficult for you. However, you will be able to get help with paying off the debts and no longer have those burdens hanging over your head, which could do wonders for your stress levels and give you a chance to make a fresh start.