Bankruptcy Qualifying Criteria
This means either not being able to afford to repay your debts as and when they
are due or having debts which are higher in value than your assets.
For most people bankruptcy is their worst nightmare and they will do anything possible
to avoid it, but for some it's an effective way to deal with their debts;
- Pensioners
- Unemployed individuals
- People with no valuable assets such as a house or vehicles
- Students
It's important to note that student loans cannot be included in your bankruptcy
and these will be treated separately and must be paid off in full.
Bankruptcy is often perceived by people as a magic wand to get rid of their mounting
debts but the reality is very different. It's therefore vital that you speak to
a professional debt advisor before looking at bankruptcy as a solution. What seems
like an impossible situation to you may actually be suitable for another type of
debt solution.
In many cases, bankruptcy results in people losing their homes and jobs which is
why it's always a last resort for the majority of the population.
If you're worried about bankruptcy and need reliable debt advice,
contact us
now or read more on our bankruptcy information page