Bankruptcy in Northern Ireland

What is Bankruptcy?

Bankruptcy is the method by which a person legally declares their inability to pay their debts as they are due. Most people would view bankruptcy as a last resort but for some it can be seen as a fresh start. You can declare yourself bankrupt or your creditors can petition to make you bankrupt if have debts of over £750. If it is your first time to be made bankrupt you will usually be discharged from bankruptcy one year after you were declared bankrupt, however the effects of Bankruptcy extend far further than just one year i.e. your credit rating will be affected for many years.
Before resorting to bankruptcy there are other debt solutions you should consider such as an Individual Voluntary Arrangement which may be a better solution for you. Bankruptcy generally has a bad stigma around it as it is made public and your details will be placed on the Bankruptcy Register which is maintained by the Department of Trade & Industry and The Insolvency Service. Also anyone who you are associated with financially such as banks, mortgage companies, loan companies, landlords etc. will be informed of your bankruptcy, and in some occupations your employment may be at risk.
Although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases. Although Bankruptcy frees you from your debt because you cant pay it, keep in mind that although your debts will be cleared your assets such as your house, car, valuables, life insurance plans, etc may be at risk as they could all be sold off in order to pay as much of the debt as possible.

How is someone made bankrupt?

An individual can be made bankrupt either in one of three ways:

• Voluntary Bankruptcy is when you declare yourself Bankrupt
• Involuntary Bankruptcy is when a creditor that you owe money to makes you Bankrupt. You must owe them at least £750 for them to do this.
• If you are in an IVA and do not follow the terms of the agreement you can be made bankrupt.

What are the Implications of bankruptcy?

Bankruptcy is seen by most people as a last resort as there are several risks and implications with it such as…

• Your landlord will find out if you are renting a house
• In some occupations your employment may be at risk i.e. You cannot be a company director, you may not practice as an Accountant / Lawyer / Justice of the Peace / Member of Parliament, you cannot take part in the promotion, formation or management of a limited company (LTD) without permission from the court.
• You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
• You will lose control of your assets.
• You cannot obtain credit for over £250 without the permission from the lender.
• Your credit is affected for many years after the annulment.
• You may be publicly examined in court.

Is there an alternative to Bankruptcy?

Many people see bankruptcy as their only choice when struggling with their debt problems. Bankruptcy is NOT your only choice, Debt Advice Northern Ireland provide other debt solutions that may solve your debt problems for you. For example depending on you circumstances you could meet the criteria for an Individual Voluntary Agreement or Debt Management Plan. For more information on either of these options call now on 0800 043 0550 and speak to one of our friendly advisors who will talk you through your options. Our advice is free and confidential so you having nothing to loose by contacting us.

Contact Debt Advice Northern Ireland for Bankruptcy Help and Advice

Get in touch with Debt Advice Northern Ireland now and we will be able to help you with your debt problems and advise you on what Debt Solutions are available to you. All our advice is FREE so you are under no obligation by giving us a call. Call us now on 0800 043 0550 or visit our Contact Page to see the various ways to get in touch with us. Alternatively you can Chat Online to one of our Debt Advisors now or take our Debt Calculator to figure out how much of your debt you could be paying back.