Nobody wants to consider personal bankruptcy in the UK, but the recent change in attitude towards substantial debt seems to indicate that the party is over and people need to start being accountable for their excessive spending. Consumer credit is no longer as readily available as it once was, so if you’re experiencing severe debt it’s likely you won’t be able to find an easy way out and may have to consider a personal bankruptcy.
If you’re one of the unfortunate people who has spent significantly beyond their means then here are the hard facts about personal bankruptcy. For one you can expect to lose your home and other assets, as they will have to be sold off to pay money back to your creditors. This alone is bad enough, especially if you have a family, but it gets worse.
You’ll have bankrupt status against your name which will be public knowledge. This can be quite embarrassing, especially if you’ve been secretive about your debt problems in the past. You’ll also have no chance of getting credit or borrowing any amount of money for any purpose whilst under the cloud of a bankruptcy. You can get special dispensation if you desperately need money, but you’ll never be allowed more than £250 at any one time.
Fortunately, personal bankruptcy UK legislation has changed since the dark ages in some ways, and you can be discharged from your bankrupt status remarkably quickly. So once you’ve overcome all of the obstacles and pain of seeing you possessions sold off, you will at least be able to start your new debt free life sooner than you might have first thought. Unfortunately, the black clouds of bankruptcy will still hang high over you, making it difficult to get your hands on any kind of financial product like a loan or a credit card.
These are the hard facts about bankruptcy and if you’re facing the procedure, things you’ll have to prepare for. If you have serious debts, hopefully this will deter you from hiding away and not getting the professional help you need at the next available opportunity.
Roger Fedrick offers more warnings and advice on personal bankruptcy at the Debt Help Site. Contact me on following sites.
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