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Bankruptcy is a form of insolvency which is normally suitable if you can’t pay back your debts in a reasonable period of time. After you have been declared bankrupt your creditors will write off your unsecured debts, this will allow you to make a fresh start, however, there are restrictions for the 12 month period of Bankruptcy whereby you will have to declare any changes to your personal circumstances to the official receiver. You will have to pay £680 to declare yourself bankrupt (£130 adjudicator fee and £550 bankruptcy deposit) this can be paid in instalments. If you are living in Northern Ireland you will have to pay £647 to declare yourself bankrupt (£115 court fee, £525 bankruptcy deposit and £7 solicitor’s fee).
- Once granted you will be protected from creditor action.
- You could be discharged after 12 months.
- Debts written off at the end of the agreement and you will be granted “debt forgiveness”.
- You don’t have to deal with your creditors.
- You may be required to sell your assets, including your property.
- If your situation improves and you have a disposable income you may be required to make a monthly contribution for up to 3 years.
- The bankruptcy will adversely affect your credit rating for 6 years.
- Depending on your job role/title there may be restrictions from your employer that will not allow you to go bankrupt.
- Cannot take out any credit until you are discharged from the bankruptcy.
- Your bank account is very likely to be frozen.
- Name will be published on an Insolvency register.
- Bankruptcy cannot be joint.
- You could possibly have a bankruptcy restriction made against you which can last up to 15 years and affect your financial affairs.
JT Maxwell Limited, Unit 1, Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.
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How long does negative information remain on a credit report?
Most negative information (like late payments) remains on your credit report for six years. Some information remains longer.
A lawsuit or unpaid judgment against you stays on your report until the statute of limitations runs out or for seven years, whichever period is longer.
A bankruptcy filing stays on the report for 6 years, and a criminal conviction may stay there permanently.
Why would my creditors accept an IVA?
In accepting an IVA, your creditors will expect to get a better return than they would from any other reasonable alternative, and your payment proposals will demonstrate this to be the case. Your creditors will also benefit from knowing your IVA will be managed, monitored and supported by your Supervisor during the term of your IVA.
What to do if you’ve been made redundant and in debt
No matter your situation, if you are struggling to make repayments or find yourself in problem debt and are at risk of redundancy then it can be very scary.
When you contact us, one of our specialists will go through the money that you have coming in and going out (household budget) and then prioritise what you need to pay for. Based on how much money you have leftover each month, and whether you think your circumstances are likely to change, there will be a number of options available to you. Our Specialist will talk to you about each of the available debt options in detail, and how each option will affect your own personal circumstances which will help you decide which is right option for you.
Can I protect my house?
An IVA will protect your home and prevents creditors from taking any legal action against you and your property. You do not have to sell your home in an IVA.
Our aim here at JT Maxwell is to help change the perception of our industry. And the reason for this is simple: we passionately believe that the service which we provide is incredibly valuable, not just for businesses, but also in a personal context.
JT Maxwell Limited, Unit 1 Lagan House, 1 Sackville Street, Lisburn, BT27 4AB.
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