Bankruptcy could provide "a fresh start"

Monday, April 26th 2010

Bankruptcy is an option that offers different people a range of options and could create a fresh start.

This is the advice of a spokesperson from the Consumer Credit Counselling Service (CCCS), who said the advantages to this status mean creditors will write off any unsecured debts.

And owners of properties in negative equity with a mortgage worth more than the house might find they can keep the home.

But there are also disadvantages, with some people being asked to sell valuable assets in a debt-settling move.

Student loans, mortgages or property charges are not covered by bankruptcy and there is a £600 fee for those applying for the status.

"Bankruptcy also affects your eligibility for certain job roles - for instance, restrictions apply to company directors, chartered accountants and lawyers, activity with limited companies and various public offices," he explains.

The CCCS offers advice to people who find themselves in debt or with money issues and says it helps more than 500,000 people annually.