What are my other options?
Bankruptcy
Bankruptcy is a big step. It's a step that people usually take as a last resort
as bankruptcy has serious implications for your future. For some people, however,
it may be an option that makes sense, or it may be the only option available to
them.
Bankruptcy is an order enforced by law that protects you from your creditors and
allows you to start afresh. If you have no chance of repaying your debts, no assets
and no need for future credit, bankruptcy may be a solution. However, there are
many issues you should consider carefully before you choose this debt solution.
If you own anything of value, including a house or car, bankruptcy will almost certainly
mean these assets will be sold off to pay your debts. Everything you earn will be
assessed and your income may be paid directly to an insolvency practitioner who
will give you a portion of your salary to cover your living expenses. The rest will
be used to repay your debts.
Bankruptcy is made public and your bankrupt status will be advertised in the newspapers.
Your bank accounts and credit card accounts will be closed. If you rent your home,
your landlord will be informed. Your job may be at risk depending on your profession.
You should also consider the longer term effects of bankruptcy. You may be refused
credit in the future and have difficulty securing a mortgage when the term of your
bankruptcy is over. Think carefully before you opt for this extreme debt solution.
Which debt solution is best for you? Find out now with our 60 second test.
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