Bankruptcy Call 0800 046 9296 (free phone) or 0161 956 8608 (local rate) for debt advice
Available in England, Wales and Northern Ireland (for the Scottish equivalent please see Sequestration.)
Bankruptcy is a form of insolvency route for individuals with serious debts that they cannot pay. Bankruptcy is often the last resort and is usually applied when no meaningful alternative can be offered to the creditors.
You may petition for your own bankruptcy or a bankruptcy order may be applied for by one of your creditors if you cannot pay what is owed to them. Whilst the Enterprise Act 2002 allows some bankruptcies to be discharged after one year, any proof of reckless spending may result in a bankruptcy period of between 2 and 15 years.
Bankruptcy Benefits:
No minimum or maximum debt level for a Bankruptcy
Once the bankruptcy has been discharged, all included debts are written off
You can pay the fee in instalments, the application will be processed once the payment has been made in full
The creditors will be prevented from taking legal action to collect debts included in the bankruptcy
Depending on the clients circumstances they could be debt free in 1 year
The client will not have to attend the courts
Applications can simply be made online
Things to consider:
Bankruptcy will show on the credit file for 6 years
All client’s assets will be considered and those above a basic standard of living will be sold.
If client is a homeowner, their property could be sold.
Details of Bankruptcy are made public.
Any income that the client earns above their basic needs will be paid towards the creditors.
Certain jobs could be affected by bankruptcy
you’ll have to follow the bankruptcy restrictions
Hexus Finance Limited are an Appointed Representative of Two Financial Services Limited, who are authorised and regulated by the Financial Conduct Authority under authorisation no. 671355. Hexus Finance Limited are registered in England and Wales, registered company address: 1 St Petersgate, Stockport, Cheshire, SK1 1EB, company registration number 10154703, Information Commissioner's Office registration number ZA183396.