If you are struggling with your personal finances and are finding it hard to pay your bills on time, it might be time to take professional advice. A lot of people use the term ‘gone bust’ for someone who is bankrupt or for a company which has ceased to trade. Bankruptcy is a formal court procedure which can be instigated by you or by one of your creditors who are owed at least £5,000. At Thomas Westcott, we would suggest that Bankruptcy is considered as a last resort, but in some instances, it is the right option depending on your circumstances.

In a typical Bankruptcy scenario your assets will be sold off to repay your creditors. This may include your home if there is sufficient equity involved. Your personal belongings, contents of your home and tools of the trade are all excluded unless these are of a high value, in which case, these may be sold also. Bankruptcy impacts heavily on families and will also impact on your credit rating and ability to obtain future credit. Bankruptcy will typically last 1 year until you are discharged. Whilst you are undischarged there are a number of restrictions imposed on you. For example, you will not be able to act as a Company Director.

There are a number of alternatives to Bankruptcy such as Individual Voluntary Arrangements (IVA) and Informal Debt Solutions. If advice is taken early enough, it may be possible to avoid Bankruptcy altogether and get your personal finances back on track. Talk to us today to discuss your circumstances on 01392 255888.