What is Bankruptcy?
Bankruptcy is usually a last resort when it comes to debt solutions and is only
really suitable when all other avenues have been looked into and ruled out.
The term bankruptcy doesn’t apply in Scotland where they have a separate legal system
and the equivalent is known as sequestration.
There are two ways in which you can become bankrupt;
- You can declare yourself bankrupt if your debts have spiralled completely out of
control and there’s no hope of ever repaying them
- One of your creditors can petition for your bankruptcy for amounts owing to them
of £750 or more
There's no doubting that the term 'bankruptcy' still has a certain stigma attached
to it by society which is due to the serious consequences that affect many bankrupts.
Find out more about the
pros
and cons of bankruptcy.