How Does Bankruptcy Work?
Overview of Bankruptcy
One of your options if you have debt problems could be bankruptcy. You can apply for bankruptcy if you can’t repay your debts.
In addition to being able to make yourself bankrupt, a creditor (someone you owe money to) can ask a court to make you bankrupt. A creditor can only do this if you owe them at least £5000.
If you do not live in England or Wales
Declaring Yourself Bankrupt in the UK
You can apply to make yourself bankrupt if you cannot pay your debts. It costs £680 to apply.
An adjudicator from the Insolvency Service will review your application. They will decide if you should be made bankrupt.
Pros of Bankruptcy
- A quick way to clear your debts and give yourself a fresh start.
- All unsecured debts are written off.
- Creditors will no longer contact you.
Cons of Bankruptcy
- Any assets may be included in your bankruptcy such as your house or car.
- Bankruptcy will remain on your credit history for 6 years, thus giving you a bad credit score.
- You will not be able to act as a Company Director.
If you do decide that bankruptcy is your only option you will find that your credit rating will be negatively effected, and being able to gain credit will be almost impossible in the mainstream market.
Entering into bankruptcy should not be taken on lightly, and you should always seek professional advice before entering on such a life changing decision.
Leasing a Car When Bankrupt
At CVS Ltd we specialise in working with customers who have been bankrupt, offering fantastic deals on personal car leasing and business car leasing. We can personalise bad credit car finance agreements to suit you: adjust your contract terms to have high mileage, low initial payments, no deposit, and adjust the length of the leaseBack to all help and advice articles