Bankruptcy Process

Bankruptcy is a very public process and should only be considered after you have fully researched all the alternatives and taken expert advice from an Insolvency Practitioner.

If you want to talk to someone about your options please call the Debt Helpline free on 0808 131 9113 and we will try and find you another solution.

How Bankruptcy Works 

Your bankruptcy can only be determined in Court after a petition has been presented by either you or your creditors, with or without your consent.

Once your bankruptcy has been declared, the Official Receiver will also notify any other financial associates about your situation, including your landlord and utility suppliers.

Any assets will be sold and distributed between your creditors and any bank accounts will be closed. It is a legal issue and consequently there are serious implications which cannot be avoided. 

Entering into an IVA may adversely affect your credit rating for up to six years from the date of approval.

Your property will be protected within an IVA but you may be required to release all or part of any equity during the period of the arrangement.

Failure to complete the term of an IVA can result in bankruptcy.

(In Scotland, a PTD is the equivalent to an IVA.)