Bankruptcy Advantages and Disadvantages
Debt is constantly mounting world wide and a lot of people are turning to bankruptcy to clear their debts quickly with devastating effects. Bankruptcy is only truly helpful in limited circumstances - used incorrectly and bankruptcy can create far more problems than it solves.
Advantages of Bankruptcy -
- Bankruptcy will limit the amount of time it takes to clear your debts.
- Bankruptcy will provide some legal protection against your debts.
- If you do not have many assets bankruptcy can sometimes work in your favour.
Disadvantages of bankruptcy -
- You are in the hands of a court official
- You will face the loss of your assets other than any necessary to aid your job or domestic needs
- You will need to change the name on your Gas, electricity, and telephone contracts. If there is no other adult, you will have to change to a prepayment system or lose the service;
- Your access to credit will be severely restricted
- Higher rates of interest on any new credit going forwards
- Some debts are not included within bankruptcy including mortgage and magistrate court fines,
- You will only be allowed a very basic bank account with no overdraft or credit facilities.
- Your bankruptcy will be publicised in the local press
- You will have to pay £600 to petition for bankruptcy.
There are other ways of getting out of debt that will not have the same disadvantages of bankruptcy so it is important for you to explore all available avenues when it comes to debt.
Filling out our compare calculator will get you started and will put you in contact with pre-vetted and verified companies that will be able to advise you professionally before you take any further action. The joy of it is that it will only take 60 seconds of your time.
