Bankruptcy - Pros and cons...

If you are facing bankruptcy you may be feeling anxious or stressed. Its good to understand the full implications of the bankruptcy process before going ahead with it. Below is a comprehensive list of pros and cons surrounding Bankruptcy;

Pros;

• Never have to deal with creditors again
  You will never have to deal with a anymore creditor again

• Debt free in 12 months or less
  In most bankruptcy cases you are discharged within 12 months (depending on circumstances)

• Debt is completely erased
  Once you bankruptcy case has been approved you will be completely free from debt

• Piece of mind
  Relax knowing your debt is completely gone and you can start a fresh

Remember there are alternatives to bankruptcy…
See if bankruptcy is right for you with our Free Online Calculator, you may find an alternative solution

Cons;

• Affects credit rating
  Bankruptcy will seriously affect your credit rating. It will remain on your credit file for up to 6 years and you will struggle to gain further credit.

• You assets may be repossessed
  If the court finds you have equity in your assets such as your car or your home, they may force you to release equity in your property or sell your car

• You cannot be a director of a limited company
  One of the restrictions of bankruptcy is you cannot be in charge or, or direct a limited company

• You may receive an Attachment of Earnings Order
  If you have a substantial amount of disposable income, or receive regular bonuses from your job you may have to pay a set amount into your bankruptcy for a set period

If you need more information on repairing your credit rating, there are a number of steps you can take which will improve your credit score. Click here for more details.