Bankruptcy Pros and Cons

Advantages

• In most cases, bankruptcy will last for 12 months, which is typically a shorter period than an IVA
• Large amounts of debt can be legally written off.
• After the debtor is discharged from bankruptcy, no more money is owed to creditors
• Bankruptcy does not have the same stigma attached to it as was the case historically

Disadvantages

• If you own your home or assets, these will be sold to repay creditors
• The debtors’ financial affairs will be scrutinised and full disclosure is necessary
• A notice of the bankruptcy will be placed in the London Gazette and maybe a local paper, and the information will remain on your credit report for at least six years
• Restrictions will apply for the period of bankruptcy and you may have to declare your bankruptcy to your employer or professional body

Conclusion 

If you want to find out anything further about this topic then please feel free to call me on 0330 236 9930, 0330 236 9938 or 07961 116321. All conversations will be in strict confidence. You can also email me vee@navigatebr.com.

This article is for information and interest only. It is not a substitute for full professional advice, which will take in to account the specific and individual circumstances. Navigate Business Recovery Limited cannot accept any responsibility for any loss arising as a result of any person or organisation acting or refraining from acting on any information.