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Personal Bankruptcy and the disadvantages associated with it

There are two main forms of bankruptcy; personal and corporate. With personal you can either declare yourself bankrupt or you can be forced to go bankrupt if you owe more than 750 to anyone or any company. If you are in debt it should be noted that it is preferable if you declare yourself bankrupt as oppose to being forced into it via pressure from your creditors as it is seen as taking control of your debts.

Although there are advantages if you do accept or declare bankruptcy, such as it removes the uncertainty and stress that is caused by dealing with creditors and they are forced to recognise that they must accept less money to repay the debt that is owed; however there are also many more disadvantages. Examples of some of the disadvantages that are associated with personal bankruptcy include:

  • You will lose all of your assets i.e. your home and life insurance policies
  • Your assets will be sold
  • Your businesses will be closed and your employees dismissed
  • If you are declared bankrupt the details of your bankruptcy are published in the London Gazette and the local press as well as being accessible on the Insolvency Service website, which means it is accessible to anyone in the world.
  • If you try and open a bank account once your bankruptcy period is over you will find it very difficult to obtain any account other than the most basic of accounts
These are just a few of the difficulties that you will be left facing if you accept or you are declared bankrupt. There are however alternative options open to you other than bankruptcy. One of these options is choosing to enlist the help of Edge of Bankruptcy.

Here at Edge of Bankruptcy we can provide you with help and guidance on all of the options that are open to you if you are currently being left facing the prospect of bankruptcy. Contact us today and we will help you in everyway that we can.

Below are some useful articles on Bankruptcy:

Debt help & advice - IVA vs Bankruptcy
Is Bankruptcy a Better Solution to Become Debt Free?
Correcting The Common Misconceptions About Filing Bankruptcy

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