Bankruptcy: benefits and consequences
Bankruptcy is usually a last resort, but for some people it is the cleanest way forward. We will explain plainly what it involves before you decide anything.
Potential benefits
- ✓Usually clears qualifying unsecured debts
- ✓Creditor contact about included debts normally stops
- ✓Discharge usually occurs after 12 months
Important considerations
- There is an application cost and bankruptcy appears on a public register and your credit file
- Your home and other valuable assets may be sold, and income payments can continue for up to three years
- Some jobs and directorships are restricted, and not every debt is written off
Talk through your options first
Safe, secure, confidential
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Why do we ask this?
Your total debt amount helps us match you with solutions designed for your level of borrowing.
Clear Debt Help is a lead generator, not a debt solution provider. If you submit your details and give consent, we pass them to third-party partner firms that provide debt solutions. We may receive a fee from a partner for the introduction. If you enter a debt solution, fees may apply and will be explained by the provider before you proceed.
To find out more about managing your money and getting independent support, visit Money Helper, an independent service set up to help people manage their money.