Speak to one of our specialist advisors 0808 156 7730

Is Bankruptcy the Best Option for Me?

04 February 2019 - Posted by TalkAboutDebt

Bankruptcy may not always be the best option for you. There are many alternatives to bankruptcy which allow you to pay off your debts. Ultimately your final decision will depend on the amount of money and assets you have. Please take a look at our debt solutions page for an overview of all your options. This article answers the question:  Is bankruptcy the best option for me?

Please note, that in certain circumstances you can cancel your bankruptcy.

 

When is bankruptcy a good option

 

Whether bankruptcy is your best option depends on the amount of unsecured debt you have, your assets and your future prospects. Here are a couple of situations when bankruptcy is a good option for you:

  • You want to clear all your debts
  • You want to stop collection calls
  • You want to save your credit score
  • You might get better access to credit
  • You don’t have many belongings
  • You have little/none equity in your house

Out of all the debt solutions, declaring bankrupt should be the last resort, as the consequences of going bankrupt are highly serious. As mentioned many times before, make sure you get free debt advice to help make the right decision. 

Please note, your benefits may be impacted by going bankrupt.

 

When is bankruptcy not a good option

 

Declaring bankrupt is not for everyone, sometimes it may be better to consider other options like a debt relief order (DRO). Bankruptcy is not a good option for you, if you:

  • You owe less than £20,000
  • Your assets are worth no more than £1000 in total
  • You work in certain occupations
  • You don’t want to go public
  • Have excessive savings
  • You really want to keep your home/property
  • Your jointly owned property has equity in it
  • Your financial situation is likely to change in the future

Please note bankruptcy won’t deal with a charging order while it is secured on a property. Bankruptcy also comes with a load of restrictions which you legally must follow, such as not be able to borrow more than £500. More information on the Gov website.

Bankruptcy can place some restrictions on moving abroad. Please read our article on bankruptcy and moving abroad.

 

Options other than bankruptcy

 

There are other options available, as well as declaring bankruptcy. Which one is best will depend on your personal circumstances. Below are some options for dealing with your debt, other than bankruptcy:

You may also have the option of reaching an informal agreement with your creditors. Take a look at our article on choosing between an IVA or a DMP for some useful information.

 

Need more help?

If you contact a free debt adviser they will be able to highlight any good or bad points from the debt solutions available to you, this makes sure that you both choose the right course of action for yourself and your family.

Check to see if you qualify to get debt help

Quickly find out if you can write off your debt today

Please select the total sum of your debt

Less than £7,000
£7,000 - £20,000
More than £20,000

How many creditors do you have?

less than 2
2 or more

What type of property do you live in?

Owned
Rented
Private Rented
Living With Parents

Where do you live?

Scotland
England
Wales
Northern Ireland

Please enter your details

I agree to be contacted by phone, email or SMS. See our Privacy Policy for more information.

Uncover options you didn't know existed.

Live Chat

Got a question? Our advisers will point you in the right direction.

  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed
Launch chat

Call us

Got a question? Our advisers will point you in the right direction.

0808 156 7730
  • Monday to Friday, 8am to 8pm
  • Saturday, 9am to 1pm
  • Sunday and Bank Holidays, closed