Is Bankruptcy the Right Solution?

Bankruptcy Is it the right solution for you? Bankruptcy is a legal status awarded by a court to people or businesses struggling to pay their creditors. It aims to settle debts and bills, prevent the situation from getting worse, and allows people to get back on their feet again. What is Bankruplcy? Cradir Cand Credit Care Credit Cand LOAN Applying for Bankruptcy is one option available to you if you have overwhelming debt problems and cannot afford to repay the companies you owe money to. You can declare yourself Bankrupt or a company could petition for a court to declare you Bankrupt. YOUR Bankruptcy should be considered as a last resort due to solving debt problems because the impact it could have on your life. Your home, car, assets and business could be sold to repay creditors. Your credit rating will also be affected. BUSINESS • HOME SWEET HOME YOUR POSESSIONS REPOSSESSED REPOSSESSED REPOSSESSED YOU MIGHT QUALIFY FOR BANKRUPTCY IF YOU CANNOT AFFORD TO PAY YOUR DEBTS! Q1 2012 Q1 2012 BANKRUPTCY AND IVA STATS Q1 2012 11, 694 IVAS GRANTED 9,132 BANKRUPTCY ORDERS GRANTED +8.1% YEAR-ON-YEAR FROM - 27.2% YEAR-ON-YEAR FROM Q1 2011 Q1 2011 SOURCE: HM Government The good news and thebad news about Bankruptay Consider the advantages and disadvantages of filing for Bankruptcy before you take the step. Advantages Disadvantages FEES You pay a fee when declared bankrupt PROTECTION Your creditors cannot harass you RESTRICTIONS- Certain restrictions apply ASSISTANCE Bankruptcy is managed by an official BUSINESS Closure of your business, staff redundancies CLEAR DEBTS LENDING Your debts are settled via negotiation Will find it hard to secure credit in the future PEACE OF MIND CREDIT RATING Credit rating will be affected in the medium to long term Reduce stress and anxiety DEBTS REBUILDING Some debts cannot be included You can plan for the future again in the order CAREER Possible loss of job, business QUALITY OF LIFE and/or reputation Ability to focus on other aspects of your life DECLARATION INCOME You could be asked to make contributions TIME from your salary to repay debts Bankruptcy orders typically last for 12 months ASSETS Assets including your home and car could be sold to repay creditors Did you know that Bankruptcy isn't the only solution available to you? You may find that you could solve your debt problems with less severe options including Debt Management Plans, Individual Voluntary Arrangements (IVA) and Debt Relief Orders... Which debt solution is best for you? ALWAYS FIND OUT IF YOUR DEBT PROBLEMS COULD BE SOLVED WITH A DEBT MANAGEMENT PLAN, AN IVA ORA DEBT RELIEF ORDER FIRST. THE REPERCUSSIONS ARE LESS SEVERE AND YOU WILL CLEAR DEBTS AT A RATE YOU CAN AFFORD. IVA DEBT MANAGEMENT PLAN "Hi Baines and Ernst, could you help me understand if Bankruptcy is the best debt solution LAST RESORT for me?" Bankruptay stage-by-stage 1. Assess whether Bankruptcy is the best option for you 2. Complete and file a Bankruptcy petition, pay the fees 3. A court will decide if a Bankruptcy order should be granted 4. If it is, an Official Receiver will be appointed by the court 5. They will investigate and manage your debt settlements 6. They will also publicise your Bankruptcy and sell assets 7. After a year, they will normally discharge you from the order Get in touch We can help. Call or text us now for a thorough assessment of your situation and practical advice on how you should proceed. 0800 138 7162 Baines &Ernst www.bainesandernst.co.uk text DEBT to 87070 now for a call back