Bankruptcy

We will always ask you to check if your debt is over six years old, as you may be able to handle your debt with one simple letter. If it is over six years old, you haven’t paid towards or communicated about the debt, or it has not gone to court, it may be considered statute-barred. Find out more about this by clicking here.

If your debt is statute-barred, pour yourself a cold (or hot) drink and relax. If not, now is not the time to panic. Bankruptcy is the very last resort, and it is the last resort for a reason. The repercussions of going down this route can affect you significantly, so it is not a decision you should make without knowing and understanding the full facts surrounding this subject.

Seriously, do not rush this decision. The article below outlines all the facts you need to know about bankruptcy. Be sure to read it, but in a nutshell, you will no longer be in charge of your finances or assets. The court will appoint someone else, usually an Official Receiver, to control your money and assets. Your bank accounts and assets will be frozen, meaning you won’t be able to access your money or sell any properties you may own.

Bankruptcy usually lasts 12 months, but if you are caught hiding any money or assets, you may be kept in your bankruptcy for longer. Most importantly, you may likely lose your home if you own one. These are just some of the pitfalls, and we encourage you to read our detailed article in the purple box below before you take action.

Hopefully, you now have a good understanding of the bankruptcy process and its possible repercussions. However, there are other options, especially if your debts are unsecured.

You may or may not know this, but understanding other options can completely change how you handle your situation. After you've read this article, go through alternative options in our I need help with debt section. The main challenge we have found with people at this crossroads is they struggle not only with the debt itself but also with the impact debt has on their emotional and mental wellbeing. This is why we created articles to help you. Scroll down to the purple box below, where you’ll find an article to help you navigate the emotional Impact of debt and a view of any mental health considerations. Your well-being is the most important thing; we want you to make decisions with a clear mind.

If someone has petitioned for bankruptcy, you must understand what this means for you and how you can limit the impact. Often, the most significant asset at risk is usually your home, so you must understand what role it plays in bankruptcy and under what circumstances you can protect it. The more knowledge you have, the better prepared you will be to handle this situation. As always, we've got you covered; take a look at the article in the purple box below, where we talk about how you can keep your home during bankruptcy.

We can’t stress enough how important it is to take your time and look at all your options before considering bankruptcy.

You should never be the one to make yourself bankrupt. If it was beneficial for a creditor or the situation allowed them to do so, a creditor would have already gone down this route without your help.

Keep calm and look at your situation in detail. This site will help you develop a strategy that may not require this action. Our community is always here if you need support.