Bankruptcy works differently depending on where you live in the UK. If you live in Scotland, the fees and processes are different and it’s sometimes referred to as sequestration (Scottish bankruptcy).
Bankruptcy may be suitable for you if it would take a very 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.
If you have any assets, like a house, car or other items of value, they’ll usually be sold and the money from this will go towards the bankruptcy.
Your credit rating will also be affected, and because of this you may find it difficult to get any further credit for up to six years.
Bankruptcy can have adverse effects on your business, as well as your pension if you're planning to draw down funds in the next few years. You also need to be aware that your bankruptcy is not confidential, and will appear on a publically-accessible register.
Thinking about bankruptcy?