However alarmed you may be by the idea of declaring yourself Bankrupt, in certain circumstances bankruptcy may be the best option.
Bankruptcy is a civil procedure that is available to everyone, although there are certain occupations in which you can’t work as an undischarged Bankrupt such as a lawyer, an accountant, MP, a director of a company or a financial advisor.
Bankruptcy is an option which should not preclude you from doing your job. After all, does experiencing financial problems make you less capable or able to do your job? Well, it may do because of the distraction caused by stress, and so for that reason alone you need to seek advice to resolve the problem.
Unfortunately, to some people, Bankruptcy carries a social stigma primarily because the bankruptcy order made against you is advertised, but clearly this is only a matter of opinion.
When you declare bankruptcy,
- your financial affairs are put in the hands of the Official Receiver or a Trustee in Bankruptcy
- your Bankruptcy will be advertised in your local newspaper (to enable any potential creditors to make a claim against you)
- bankrupts have certain restrictions. For example if a bankrupt wishes to obtain credit of over Â£500 he must first disclose to the credit provider he is bankrupt
- you are discharged from Bankruptcy usually after one year