FAQ's about Bankruptcy
Below are some of the more frequently asked questions we get about Bankruptcy.
What is Bankruptcy?
It is a legal process that gets you free from debt and allows you to make a fresh start – you have to sell all current assest to raise funds to pay off your creditors. Once your bankruptcy period has ended (normally 12 months) your creditors will not be bale to make further claims against you.
Will other people know I'm bankrupt?
Bankruptcy orders are advertised in local newspapers. Details are also placed on a bankruptcy register maintained by the Department of Trade & Industry and the Insolvency Service. This is a public document and can be seen by the public via the internet. Also any one you have had a financial relationship with, banks, building societies, mortgage companies, loan and hire purchase companies, landlords, pension schemes and insurance companies.
Could I lose my job?
It is possible that you could lose, check your employment contract. Also check if you are a member of a professional body, as you could default your membership, mean that you are unable to continue that role. Generally though your job will be safe.
How long will I be bankrupt?
The general rule is a maximum period of twelve months. This period can be shorter should the Official Receiver complete his enquiries earlier and file a notice to that effect in court.
Is an IVA an alternative to bankruptcy?
An IVA is an alternative to going bankrupt, but also depends on your financial situation and current employment and income. Speak to one of our advisers to find out more.
Click here to find out about IVA’s