The way bankruptcy works depends on where you live in the UK. If you live in Scotland, the fees and processes are different. Read our guide to debt advice in Scotland (link).
Bankruptcy may be suitable for you if:
- It would take a long time to pay off your debts, and
- Your financial situation is unlikely to improve in the near future
Although bankruptcy writes off most of your debts, it can affect other parts of your life. Such as your home and job.
Assets may be sold and the money made from this would go towards the bankruptcy. This includes things such as:
- A house
- A car
- Other items of value
Your credit rating will also be affected. Because of this, you may find it hard to get credit for up to six years.
Bankruptcy can have adverse effects on:
- Your business
- Your pension - if you are planning to draw down funds in the next few years
Bankruptcy is not confidential. It will appear on a publicly accessible register.