What is Personal Bankruptcy?
Personal bankruptcy is a solution to debts that you cannot afford to repay. Upon your discharge from bankruptcy you will be freed from all your unsecured debts, except those that are excluded from personal bankruptcy. During bankruptcy you will be subject to certain restrictions, which are a criminal offence to break.
Bankruptcy affects people differently, some keeping it very personal whilst others are quite happy to talk openly about it.
The stigma of personal bankruptcy has diminished in recent years and the number of people declaring bankruptcy has increased. Consequently, bankruptcy is receiving more and more media attention as the UK’s debt problem is reported.
In the past three years, the number of people opting for personal bankruptcy in the UK has increased significantly.
Avoiding Personal Bankruptcy
When contemplating bankruptcy, alternative solutions should also be considered as they may be more suitable and help you to avoid personal bankruptcy. Examples include individual voluntary arrangements and debt management plans.
If you do decide to avoid personal bankruptcy it is essential that you have a clear plan for dealing with your debts. You would not want to face bankruptcy following more anguish of dealing with debts.
Piggy's avoid bankruptcy page will provide more information on how to avoid personal bankruptcy.
Declaring Personal Bankruptcy
If you decide that declaring personal bankruptcy is your most suitable solution, you will need to present a bankruptcy petition and a statement of affairs form to your local county court. You will also need to pay a fee.
Consequences of Personal Bankruptcy
Reasons for bankruptcy vary from person to person and whilst some are blameworthy others are not. The consequences of personal bankruptcy are harsher for somebody who is blameworthy, with bankruptcy restrictions prolonged for a period of 2 to 15 years.
Once the bankruptcy order has been granted you will be subject to bankruptcy restrictions until you are discharged from the bankruptcy. These restrictions can be found at the bankruptcy page.
Further consequences of personal bankruptcy can be found at the consequences of bankruptcy page. They include losing your house and personal assets of any value, also you bank account will be closed.
