Advice on Bankruptcy- Know Everything Important

Going through the process of Bankruptcy is a big step, so are you sure you need to go down that road and are there some other options you can take?

What is bankruptcy?

Bankrutcy is often seen as the end of the fiancial road for someone who has experienced severe financial difficulties, however it does have to mean the end of the world. Becoming bankrupt or going through the process of bankruptcy has ofetn carried a large amount of stigma but not so much in the modern world asthere are more and more people having to resort to it as a way of clearing their debts and putting their lives back on track.

Banckruptcy, technicalliy by definition means 'When you are made bankrupt, your assets (possessions, home, income etc) can be used to pay your debts. You have to agree to certain restrictions and your financial affairs will be investigated.' (Source: http://www.direct.gov.uk)

Is bankruptcy your first option?

Becoming bankrupt or going through the process of becoming bank rupt does not necessarily need to be your fist and only option - there could be some alternative ways of avoidnig becoming bankrupt or clearing any debts or bad credit you have accumilated.

There are many companies and businesses available who will offer you 'free' advice on what your best options are however you may be better advised to contact the Citizens Adivce webiste http://www.citizensadvice.org.uk or alternatively the Govenrments own website where you will be able to find more help and advice http://www.direct.gov.uk

There are other options available to help clear your debts, including a Debt Management Programme or an Individual Volluntary Arrangement (IVA) however you are always advised to speak to someone independantly first before committing to anything and almost certainly you should contact your creditors (the people you owe money to) as soon as you know you are having trouble paying them back, as they may well help you.

What are the benefits of bankruptcy?

There are some benefits of becoming bankrupt, especially if you owe a substantial amount of money or if your assetts are much lower than your debts, however it is not recommened to become bankrupt unless you really have to as the financial implications for the future can be very damaging.

Seeking independant advice is essential when considering either becoming bankrupt or going the the process of bankruptcy.

Negative Impacts of Bankruptcy

The largest negative impact of being a bankrupt or going through bankrutcy is almost the loss of your 'normal' bank account facility. If you current bank was one of your creditors then without doubt they will look to either close yuor account or freeze any money paid in, so one wa of protecting any income you have is to open a basic bank account and preferrably one that offers a full bank account service.

With our basic bank account you can still pay money in via the Internet or over the counter, you can still have a Mastercard® to use anywhere in the world, receive SMS text balances free, see a bank staement every month, set-up direct debits or standing orders that need to be paid and have a your own personal money manager to help you organise your finances - plus many more features...

So whilst being bankrupt or going through the process of bankruptcy may seems very stressful, prepare yourself and open one of our bank accounts for bankrupts and begin rebuilding your financial life today.

Need more information about bank account for bankrupts?

Call us on either 0800 634 0627 or 0845 388 6802 and with no obligation we can discuss setting up your bank account.

Becoming bankrupt was once considered the end of the road for many people however in the modern world it no longer carries the stigma it once did and rebuilding your life is much easier now, so start the process of taking back control of your own finances by opening a bank account.