Bankruptcy

Bankruptcy is the “sledgehammer” of debt management.

If you have no foreseeable way to pay debts and no or few assets this can be a good tool to control and get rid of your debts. Usually if you make yourself bankrupt it can only last 12 months but may have effects on businesses you can run and other restrictions may apply.

Always seek advice on such matters as it can be a long drawn out process and there is also quite a large court fee to make yourself Bankrupt.
 

For further information regarding Bankruptcy and the implications it may have on your life please click on the following link: http://en.wikipedia.org/wiki/Bankruptcy_in_the_United_Kingdom

Debt Relief Orders

Debt Relief Orders are another form of insolvency for people with smaller debts and very little ability to repay them. They are restricted to people who have a total debt of no more than £15,000 and have less than £50 disposable income per month. There are other restrictions to taking out a Debt Relief Order (DRO), you cannot own anything worth more that £300 apart from a car which cannot be of more than £1000 in value. The fee for DRO's is £90 and can be paid over six months. Please call Debtaid for more information.