Bankruptcy Information, Debt Advice Plus The Pros and Cons

Is Declaring myself Bankrupt the right thing for me?

Disadvantages

• When bankrupt, you can't apply for more credit.
• It will cost you approximately €490 to declare yourself bankrupt.
• If you own your own home, it might have to be sold (but you may be able to apply to your local authority for re-housing).
• Some of your personal possessions might have to be sold, for example, its likely you will lose your car and any luxury items you own.
• Many professions don't let people who have been made bankrupt carry on working.
• If you have a business, it's more than likely that the Official Receiver will close down the business, dismiss your employees and sell off the assets.
• Becoming bankrupt can affect you if you want to leave the country in the future.
• Bankruptcy is not kept private. A list of bankrupt people is published on the internet and your case could also be published in your local newspaper.
• When you are no longer bankrupt you could have another order, called a bankruptcy restriction order, made against you. These orders can be made, for example, where you did not co-operate with the Official Receiver, or you took on debts knowing that you had no hope of paying them back. They can last for 15 years and will make your financial affairs very restricted.
• Bankruptcy can ruin your potential to run a business because you cannot trade under any other name.
• A handful of bankruptcy cases are publically examined in court.
• Your credit rating will be completely damaged for a long time, up to 6 years.
• Student Loan debts will not be written off.
• The Official Receiver may make you sell your most expensive and valuable assets.
• You could lose your job and any chance of promotion.
• You cannot be a director of a limited company.
• If you are a professional, your status can be lost.

Advantages

• Their is no more pressure as you don't have deal with the creditors anymore.
• You are allowed to keep certain items, such as household goods and a reasonable amount to live on.
• You can make a fresh start one year after the bankruptcy order is over.
• All the debts you owe can usually be written off.
• After a bankruptcy order, most creditors have to call off any court action (but in some cases still be able to take your personal items and valuables away).
• Many creditors have to stop tracking you for the owed debts and make their claim to the trustee instead.
• It's the oppruntunity for a financial start over.
• And no more dealing with creditors.