What is bankruptcy?

Answer

Either you or your creditor can file bankruptcy. The amount that bankruptcy proceedings can start, in the UK, is £750.

Bankruptcy is a very public process and converts your possessions and disposable income into cash to repay some or all of your outstanding credit commitments to your creditors.

Bankruptcy should be seen as a last resort for those who find themselves insolvent, which means they cannot afford to pay back their debts. Bankruptcy comes with many implications which cannot be avoided, these implications can effect your personal, financial and career status for many years to come.

Always seek bankruptcy advice before you think about declaring bankruptcy. There are a number of debt solutions which could provide you with a better bankruptcy alternative, such as an IVA or Debt Management Plan.

First answer by ID1125069366. Last edit by Oneadvice. Contributor trust: 7 [recommend contributor]. Question popularity: 15 [recommend question]