  What is Bankruptcy?Sounds too good to be true, why doesn't everyone do it?Declaring yourself bankrupt is no simple matter and there are a lot of negative sides to declaring yourself bankrupt. You'll have a black mark on your record for the next six years, making it difficult to even get a basic bank account, let alone a credit card or a mobile phone contract. You'll also have lost everything you once owed, including your home and all of your possessions. You'll be able to start again but you may not even be able to keep your job, as many businesses will not employ people who have been declared bankrupt, particularly in roles that involve money or working to a budget. The process also takes around twelve months, during which time your name will appear on a national register for all to see. Until recently your name and address would also have appeared in the local newspaper, although that only happens now if your bankruptcy is deemed to be of public interest. Someone who is declared bankrupt is never allowed to be the director of a company again, so you'll never be able to sit on the board of directors of any company, including your own in the future. How much does bankruptcy cost?The reason some people have not declared themselves bankrupt is because they can't afford to. There is no set cost for bankruptcy, and it depends on your situation as to how much you will be charged, but declaring yourself bankrupt can cost between £500 and £1000, money many people cannot spare. Once you have entered into bankruptcy proceedings you cannot obtain credit of £500 or more from anyone without declaring the fact you are bankrupt. |
