Bankruptcy is a way of dealing with debts when you cannot possibly afford to pay them back. If you have personal insolvency, bankruptcy can free you from your debts within 12 months and ensures any assets you have are shared evenly amongst your creditors.
Once you have received your discharge then you are totally debt free subject to some limitations.
Bankruptcy should only be considered when you cannot pay your debts. Going bankrupt for the first time will generally mean that you will be discharged from your bankruptcy after 12 months, or even less in some cases.
Bankruptcy means that your financial affairs are administered by a Trustee. All your assets, including your home if there is a reasonable amount of equity, will vest in your Trustee. The Trustee will also administer all that you owe to your Creditors and deal with their claims. Essentially the Trustee sells all the bankrupts permitted assets (this can include those of high value) and use the money to pay as much as possible to your various Creditors.
As leading Insolvency Practitioners, we have the in-house expertise to offer you the most appropriate and valuable personal bankruptcy advice, providing you with the different options available to you. The most common alternative is an Individual Voluntary Arrangement although this may not be the right solution for everyone.