Please note that from April 06 2016, all bankruptcy applications must be made online. see bankruptcy online.
Bankruptcy is often viewed as a taboo subject in the UK, and the course of last resort. However, having been through it back in 2006 I can honestly say that it served its purpose. Since then I have written about the subject and achieved a qualification to help others.
When I went bankrupt, I remember two aspects that concerned me the most. What would happen during the process and how would my life change as a result. To that end, I have written on both of these aspects.
The great news is that, within context, bankruptcy really can be a fresh start. However, that is somewhat dependent upon you. If you take the correct action with regards to recovery, you will be well on your way.
Recovering from bankruptcy can, and should start, well before you go bankrupt. The research you conduct will allow you to overcome some of the difficulties you are likely to experience both during and after you go bankrupt. For example, if you want a mortgage in the future then you will need to once again become credit worthy. That will take time and the sooner you start the better.
Take a look at the following links below for more tips and examples.
Every individual going bankrupt has some concern about how the bankruptcy will affect them. The consequences are, to some degree, determined by your behaviour leading up to and during the bankruptcy. When you go bankrupt, the official receiver will assess your circumstances leading up to the bankruptcy as well as your financial position. From this assessment, some of the consequences are determined.
Whilst there is nothing you can do to change what has happened in the past, there are steps you can take starting right now. Some of the following links will shed more light.
Below I have addressed some of the myths surrounding bankruptcy.
In my experience this certainly was not the case. The staff in the official receiver's office have a job to do. It is a formal role. As such they are not likely to be on best mate terms with you. By the same token, you should expect courtesy and professionalism, which is what I received.
I have detailed more about their role on the official receiver page.
It's true that with a record of bankruptcy it will be more difficult to obtain a bank account. However, you can most definitely get one. Different products are suitable at different stages, they range from fee charging to free.
It's a complete myth that you cannot get credit following bankruptcy. You can, however, you should be very careful about doing so. In fact, depending on your circumstances obtaining credit can be a viable way to repair your credit. p>
You will often hear people suggest that you avoid bankruptcy at all costs and only do it as a last resort. That is an absolute load of rubbish! Bankruptcy is an option that should be considered alongside all of the different debt solutions. If it is your best option given your circumstances, then so be it. Your situation could be made much worse by opting for a solution that is likely to fail some years down the road and then having to go bankrupt anyway.
Bankruptcy is most certainly consequential in nature, however, it can be a fresh start. Like I said above, it provides an opportunity to start a new chapter. The trick with bankruptcy is to ensure that it is your best option and to recover correctly from it. Life after bankruptcy may require some work to get back on your feet, but that work should be worth it.
Bankruptcy is not easy, let's get that straight. No debt solution is easy. If you are in debt then mechanisms exist to deal with it. However, it will require work on your part. Bankruptcy is no different. To choose bankruptcy as a solution, deal with the process and to fully recover will take careful choices and time. It will not happen overnight. That said, if you approach bankruptcy with the respect that it deserves, it may work favourably in your direction. The opposite is also true. If you do not give it respect, it may cause you more problems than you anticipated.
In a business sense, bankruptcy is intended to be a fresh start. It is entirely possible to start a new business. There are considerations that need to be given depending on when you want to start. For example, if you want to start a new business when you are bankrupt then it will be different to starting a business after your bankruptcy.
What, never? Simply not true! You can get a mortgage once you are discharged, but it may not be easy. Again, it is largely the actions you take to recover from bankruptcy that will determine how successful you are.
Although we await statistics for the final quarter of 2015, bankruptcy levels have continued a downward trend. To date, 12,010 went bankrupt in the first three quarters. Recent news affecting the statistics include:
What 2016 will bring is anyone's guess. Presently macroeconomic variables are not conducive to a solid prediction. Wage growth, inflation and the big one of inflation may well be subdued but that could all change. A recent news report that consumer debt is on the rise is particularly worrying for the future. Regardless of the stats, it is an unfortunate fact that 2016 will be no different to 2015: many people will still be experiencing bankruptcy.
Bankruptcy can feel very isolating at times but it is important to understand that you are not alone. Many people have been bankrupt before and many will again.
To help provide a personal perspective on bankruptcy I have published the accounts of other individuals who were kind enough to share their experiences.
From April 06th 2016 all bankruptcy applications must be made through the new online process. There are a number of reasons for this change that are expected to benefit both the debtor and case administration. The main aims of the new process are to remove the need to go to …...more info
This experience was sent in today. I had to declare myself bankrupt about 3 years ago. This was because I went stupid with too many credit cards. For 2 years before I went bankrupt I was just paying off one card with the next one and so on until it …...more info