Often people think of the word 'bankruptcy' as frightening, daunting, too serious to contemplate. However, for those that need it, bankruptcy can also be incredibly freeing - a way to get you back on track. Find out more below.Let's get started
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How could bankruptcy help you?
Bankruptcy, or sequestration in Scotland, is a debt solution that allows you to take back control of your finances.
Often, people associate the word ‘bankruptcy’ with negative implications only; however bankruptcy can also be incredibly freeing to people who have become overwhelmed with debt and need to get back on track.
If it is unlikely you will be able to repay you debts in full and if it’s also unlikely creditors will agree to a trust deed, bankruptcy may be an option for you. In a bankruptcy, you will only pay what you can afford towards your debt over a fixed period of usually 4 years. We will contact your creditors to inform them you have been made bankrupt, and give you legal protection from any action they may wish to take. Whilst you will be required to pay what you can afford for four years, if you have co-operated with your Trustee, you may be discharged after one year. This means that the restrictions of bankruptcy would no longer apply. Of course the agreed payments would need to continue throughout the four year period.
When you contact Cleanslate for help with bankruptcy, our advisers will ask you some simple questions to fully understand your financial circumstances. Applying for bankruptcy is a serious step to take. If bankruptcy is not right for you, we will advise you of other options that might be more suitable.
Frequently asked questions
Other debt solutions
Problem debt is common. We try to make it less of a problem every day. Find out how below.
Debt Arrangement Scheme
When debts become difficult to handle, the Debt Arrangement Scheme gives you the breathing space to repay your debts in full with one monthly affordable payment and interest frozen.
Protected Trust Deed
If you can’t afford to repay your debts in full, a protected trust deed allows you to repay what you can over an agreed period of time. Once completed, the remaining balance is written off.
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