Bankruptcy is usually seen as the option of last resort in the struggle to escape the demands for payment by debt collectors and credit companies.
But it's a big step and it's not something that anyone should rush in to. Make sure you consider all the alternatives - in consultation with a qualified professional - before acting rashly.
It's usually only in the most extreme cases that the process of bankruptcy is preferable to a more flexible alternative such as an individual voluntary arrangement ("IVA"). Bear in mind that while declaring yourself (or having someone else declare you) bankrupt will give you a fresh financial start, it will also impose severe limitations on you in the future.
For example, you would have to give up any possessions of significant value and any interest in your home. If you run a business it will probably be closed and any employees dismissed. You may well face problems in the future - for example, a bankruptcy order remains on your credit reference file for six years and you would be disbarred from being a company director and from holding certain public offices while bankrupt.
Even at the best of times, bankruptcy can be a very painful business. At Marshman Price our experts are here to help advise you of all the options and either help you through the process - or help you avoid bankruptcy and its implications. To find out more, call us on 0800 082 8898.