Unlike other debt solutions such as an individual voluntary arrangement (IVA) or debt management plan (DMP), in bankruptcy you do not have to make any payments towards your creditors unless you can afford to do so.

For this reason, if after taking account of your monthly living expenses, you cannot afford to pay anything each month or only a very small amount, bankruptcy may be the right solution for you.

If you can afford to make payments to your creditors, this does not mean that bankruptcy is not appropriate for you. In this situation you may be asked to make payments towards your creditors. However, these payments would last for only three years compared to five in an IVA and normally far longer if you use a DMP.

For this reason, if you declare bankruptcy your creditors are likely to receive less than if you had gone down the IVA or DMP route.

How to Start

Got a question? Why not use the Bankruptcy Forum which gives you direct online access to debt management experts

Call us now on 0800 077 6180 to discuss how Bankruptcy could solve your debt problem