Disadvantages of bankruptcy
Bankruptcy is personal insolvency's "nuclear option". That's not
to say it is not the right choice for many - it often is. But, life
won't be the same after becoming bankrupt - not least when it comes
to rebuilding your credit rating in years to come:
- All your assets, apart from those required for a basic standard
of living, will be sold. This may include your house.
- You will not be allowed to obtain more than £500 credit unless
you first disclose that you are bankrupt.
- Any income you have in excess of that needed for your basic
needs will have to be paid to your creditors.
- Your job may be at risk: certain trades and professions will
not allow you to work when bankrupt.
- Your credit rating will be affected (probably for some time
after your bankruptcy ceases) and there may be other restrictions,
such as having your bank and credit card accounts closed.
- Your bankruptcy will be advertised in newspapers.
Is
bankrupty the best option for me? »
