Things to know about Bankruptcy

Bankruptcy is a way of dealing with debts you cannot pay. The bankruptcy proceedings free you from debt, subject to restrictions and ensure your assets are shared among your creditors in a fair way.

Last resort – Only used when other debt solutions are not appropriate

Fresh start – All debts are written off so you can start again

Restrictions apply – Lose control over your assets, you can only borrow £500 (without informing the lender of you are bankrupt) and may not be able to hold certain positions

Advantages

• Clean break

Disadvantages

• Lose assets, including home
• Affects credit rating
• May affect future employment