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Bankruptcy - Pros and Cons
Debt free in a normally 12 months
Property and assets at risk
Considered the last resort 
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Bankruptcy - Pros and Cons
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Bankruptcy – Pros (advantages) & Cons (disadvantages)
Bankruptcy – Pros (advantages)
What are the advantages to bankruptcy?
Bankruptcy – Pros (advantages)
What are the advantages to bankruptcy?
Removes the uncertainty and stress caused by dealing with your creditors.
Once an order is made, a third party takes control over the administration, decision-making and payment process of the debts
Debtors normally pay less with bankruptcy than with an IVA.
Creditors recognise that they must accept less money than is owed.
Creditors cannot change their minds once the bankruptcy process has started and seldom take little interest in the debt.
Once discharged, most debts are written off and creditors cannot pursue them. Some debts, such as Student Loans Company debts,are not included in bankruptcy. For those debts the bankrupt will continue to owe them even once they have completed their period of
bankruptcy and have been discharged.
Bankruptcy - Cons (disadvantages)
What are the disadvantages to bankruptcy?
What are the disadvantages to bankruptcy?
The debtor assets may be at risk, these assets may be sold and monies paid towards the bankruptcy.
If the debtor owns equity in a home, this will almost certainly be sold.
If you own a business is it could be sold and any employees dismissed.
Bank current accounts can be difficult to obtain.
If you try to obtain credit of more than £500 (the debtor must disclose his status as an un-discharged bankrupt.
The debtor must allow all his financial affairs to be scrutinised, and can face criminal charges if irregularities are found.
Cannot hold certain public offices, such as MP, councillor or magistrate, or practice certain professions, such as solicitor and accountant.
Names of those made bankrupt are published in the London Gazette and the local press
Certain debts cannot be written off: fines, maintenance/child support payments, other family court orders, debts to secured creditors, debts from personal injury claims, debts incurred through fraud, debt arising from certain other orders of the criminal court.
Bankruptcy does not affect the rights of secured creditors..
Bankrupts can last up to 15 years 