Crystal Clear Home Loans are specialists in helping people who have or have had credit problems.  We would never help or advise customers to consider bankruptcy.  We would always recommend to customers who have equity in their property to consider re-mortgaging before choosing the path of making yourself bankrupt or arranging an IVA (see below).

Bankruptcy should only be considered if you have serious credit problems, no equity and no means to settle your debts.  Please be aware that Bankruptcy is a very public and degrading experience that no-one should have to go through. Neither applicant nor lender benefits from a bankruptcy hearing and the result is always the same, a no-win outcome for all involved.
However, to help you in making a decision here is some information for you to digest and consider.

What is Bankruptcy?

When an individual cannot pay their debt, Bankruptcy is an option that often has to be considered.  A first time bankrupt will often be discharged one year after there date of bankruptcy, in some cases the discharge period can be less than 12 months.
As previously mentioned, although bankruptcy has a bad stigma and is publicly advertised, it should always be considered when dealing with individual insolvency cases.
Always look for alternatives such as an Individual Voluntary Arrangement procedure (IVA).

What is the outcome of bankruptcy?

You are free from your debts and can make a fresh start, subject to restrictions
Your assets are shared out equally from your creditors.
Even after being discharged, it can affect the ability to obtain a mortgage or get credit for many years to come.

Anyone can go bankrupt, including individual members of a partnership. There are different insolvency procedures for dealing with companies and for partnerships themselves.

How are you made bankrupt?

You can be made bankrupt either in one of three ways.

• Voluntarily – You can make yourself bankrupt.
• Involuntarily – Your creditors can make you bankrupt with any debt in excess of £750.
• The supervisor or anyone bound by an IVA
  

What are the consequences of going Bankrupt?

Bank accounts, credit cards will be closed. Anything that is being purchased by lease or HP, such as your car, will be immediately returned to its owner. Any asset that might have been acquired during the term of the bankruptcy, such as inheritances, insurance payouts/maturities, equity in property, windfalls, etc., and possibly pension income. The bankruptcy application will be advertised in the London Gazette and the local press where you live. Any business you own will be closed immediately Your bank, building society, creditors, landlord, etc will be informed immediately. People that have been bankrupt before should be very careful about being made bankrupt again, as the minimum period of bankruptcy is 5 years, and could continue for up to 15 years before being discharged. You cannot obtain credit for over £250 without the permission from the lender. You cannot act as a company director. You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court. You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy. You may not practice as a Charted Accountant / Lawyer. You may not act as a Justice of the peace (JP). You may not become a member of parliament. You may not become a member of the local authority. Your credit is affected for many years after the annulment. You may be publicly examined in court.

Recently, more and more people have individually & voluntarily made arrangments with their creditors to pay back approximately 40p in every pound to the creditors involved. The benefit of these IVA's is that in most instances the debtor can retain possession of major assets such as their home, the costs associated are lower nd the commerical implications less stringent.

Crystal Clear Home Loans specialise in helping customers get the remortgage deal they want, even if you have an adverse credit history. This includes if you have been discharged as bankrupt or are in the process of exiting an IVA . We have a range of Bankruptcy/IVA remortgage deals on offer, each tailored to your specific circumstances to help you get the re-mortgage deal that’s right for you.  Click quote me, so that one of our qualified advisors can talk you through a bankruptcy alternative.