Bankruptcy

Bankruptcy

Release Money Group's subsidiary company Debt Release Direct can help debtors with bankruptcy help and advice.

Bankruptcy is a legal process which becomes an option when your debts are greater than your assets, and involves writing off all of your debts so you can no longer be chased for them. A court official known as The Official Receiver will be put in charge of your estate and could sell your assets in order to pay some or all of your creditors. The official receiver will decide whether or not you can afford to make payments to your creditors for up to three years. Declaring yourself bankrupt can essentially write off all of your debts, usually within 12 months, but you could struggle with credit applications in the future.

Is Bankruptcy right for me?

Before you choose to file for bankruptcy it is vital that you discuss your situation with a debt professional, as it may have permanent implications on your ability to get credit or certain jobs in the future.

In many cases it can be the best or only solution to an individual's debt problem. Sometimes it may be better to consider an alternative solution such as an Individual Voluntary Arrangement (IVA) or other solutions that do not carry the same restrictive consequences.

What are the advantages of Bankruptcy?

• You have complete legal protection from your creditors
• You do not have to pay your creditors directly any longer
• At the end of your period of bankruptcy (usually about 12 months), all your debts will be written off

What are the disadvantages of Bankruptcy?

• You may lose any property or valuable assets you own
• You may be refused certain jobs in the future and it could affect your current employment situation
• During your period of bankruptcy your ability to obtain credit will be restricted
• You may struggle to get credit in the future, even after you have been discharged
• Your name will appear on a public register known as the Insolvency Service Register
• The official receiver may ask you to agree to an Income Payments Agreement from any surplus income or impose an Income Payments Order via your employer
• If the official receiver considers you have acted dishonestly or are to blame, then he may ask the court to impose a Bankruptcy Restrictions Order which could last for up to 15 years

How can Debt Release Direct help you with Bankruptcy?

Debt Release Direct's Cert-DR qualified debt and bankruptcy specialists will be able to help by dispelling common bankruptcy myths, answering any questions you have and giving you professional debt advice.

Bankruptcy can be a frightening and intimidating experience when done alone. Our advisors can fill in the necessary forms for you, talk to you before and after your court appearance and provide you with all the advice and help you need. We can also provide you with a brand new bank account that gives you savings at many high street stores and will not be closed because of your bankruptcy.