One Advice would always recommend that you seek professional bankruptcy advice before declaring yourself bankrupt, as there are a number of bankruptcy disadvantages which cannot be avoided.
We have a complete Bankruptcy Advice Service who can help answer any questions which you may have in relation to bankruptcy. We could be able to help you through the whole bankruptcy service or see if your circumstances are better suited to an alternate debt solution.
Below lists some of the key bankruptcy disadvantages. But this is not an inclusive list of all the bankruptcy disadvantages which is why you should seek expert bankruptcy advice as there could be further bankruptcy disadvantages which are not listed here.
1: Your credit rating will be damaged – When you have declare bankruptcy, the bankruptcy order will remain on your credit file for six years, making it very difficult to accepted for credit in the future. Although you may not wish to get credit again, you should still take this bankruptcy disadvantage into consideration incase you wish to get your foot on the property ladder as a mortgage may also be near impossible to get.
2: You will lose control of your finances – Bankruptcy means that you will lose control of your finances as your Official Receiver will be in charge of your assets which they may wish to sell in order to pay off your debt. This means that your home can be sold and you could lose your car or have it replaced for a smaller model. On top of this, you may still be required to make additional payments to your creditors.
3: Bankruptcy is a public process – The public nature of bankruptcy means that details of your bankruptcy order will be published in your local newspaper or the London Gazette, meaning there can be a social stigma attached to declaring bankruptcy.