Bankruptcy
Bankruptcy is a formal insolvency process; you may be suitable for this if you cannot afford to repay your debts as and when they fall due.
Bee Wise Solutions specialises in administering Individual Voluntary Arrangement (IVA) and we will charge fees for this service, you can find out more about the fees charged here. Should we recommend an alternative solution (e.g Debt Relief Order, Debt Management Plan) then we will refer you to one of our trusted third parties and may receive a fee for this. An IVA is not suitable in all circumstances. Entering a debt solution may impact your credit file.
To find out more about managing your money and getting free and impartial debt advice, visit www.moneyhelper.org.uk, an independent service set up to help people manage their money.
Bankruptcy
Bankruptcy is a formal insolvency process; you may be suitable for this if you cannot afford to repay your debts as and when they fall due. You can make an application yourself online or your creditors can apply to make you bankrupt; however, you would need to owe them £5000 or more for the creditor to do this.
Benefits:
- Your creditors are no longer able to pursue the debts.
- Interest and Charges are frozen.
- All your debts are written off following the 12-month moratorium period
- You can pay the fee in instalments and apply online – you cannot submit the application until the fee is paid in full.
- Includes most debt types.
Considerations:
- Assets of value may be sold to repay your debts (including your home – if you’re a homeowner).
- The application fee is £680.
- If you’re in employment, you could be subject to an Income Payments Order for 3 years
- Your details will be listed on the insolvency register.
- Will affect your credit profile as it will be recorded on there for 6 years.