Be sure you're making the right decision.
If you’re on this page, you may have reached a point where you think you just cannot take the stress anymore and you just want it to all go away. Perhaps you’re here because you assume that your struggles with your debt means you will be made bankrupt.
Don’t worry, we’re here to calm you down as 90% of the time, the move to Bankruptcy really isn’t necessary. If your debt is unsecured, we really recommend you go straight to our unsecured debt section to find out about a much less drastic way to tackle your debt.
Bankruptcy and Statute Barred Debt
You will find that we will always ask you to check if your debt is more than six years old as you may be able to handle your debt with one simple letter. If it is more than six years old, you haven’t paid towards, communicated about the debt, or the debt has not gone to court, it may be considered statute barred. Find out more about this by clicking here.
If your debt is statute barred, pour yourself a cold (or hot) drink and relax. If not, now is not the time to panic. Bankruptcy is the very last resort and it’s the last resort for a reason. The repercussions of going down this route can affect you greatly, so it is not a decision you should take without knowing and understanding the full facts surrounding this subject.
Bankruptcy is the very last resort
The Real Debt Guy
Where to start with Bankruptcy
Seriously, do not rush this decision, the article below outlines all of the facts you need to know about bankruptcy. Be sure to read that but in a nutshell, you will no longer be in charge of finances or your assets. The court will appoint someone else, usually an Official Receiver, to take control of both your money and your assets. Your bank accounts and assets will be frozen meaning you won’t be able to access your money or sell any properties you may own.
Bankruptcy usually lasts for 12 months but if you are caught hiding any money or assets you may be kept in your bankruptcy for longer. Most importantly, you may likely lose your home if you own one. This is just some of the pitfalls and we encourage you to read our detailed article in the purple box below before making taking any action.
Get into the right frame of mind
Hopefully you now have a good understanding of the bankruptcy process and the possible repercussions. There are other options especially if your debts are unsecured.
You may or may not know this, but understanding other options can completely change the way you handle your situation. After you've read this article go through alternative options in our I need help with debt section. The main challenge we have found with people at this crossroads is they struggle not only with the debt itself, but also with the impact debt has on their emotional and mental wellbeing. This is why we created articles to help you. Scroll down to the purple box below where you’ll find an article to help you navigate the emotional Impact of debt, as well a view of any mental health considerations. Your wellbeing is the most important thing, we want you to make decisions with a clear mind.
Managing your emotions
If someone has petitioned for your bankruptcy, it is vital you understand what this will mean for you and ways you can limit the impact. Often, the biggest asset at risk is usually your home so it is really important that you understand what role it plays in bankruptcy and under what circumstances you can protect it. The more knowledge you have, the better prepared you will be to handle this situation. We got you covered as always, take a look at the article in the purple box below where we talk about how you can keep your home during bankruptcy.
Bankruptcy and your home
We're here if you need
We can’t stress enough how important it is that you really take your time and look at all your options before even considering bankruptcy.
You should never be the one to make yourself bankrupt, if it was beneficial for a creditor or the situation allowed them to do so, a creditor would have already gone down this route without your help.
Keep calm and look at your situation in detail, this site will help you come up with a strategy that may not require this action. Our community is always here if you need support.