What should I do if I can’t afford to go Bankrupt in the UK?
- Struggling to find the funds to enter into personal voluntary Bankruptcy?
This is a common problem for a great number of people in the UK who realise that personal bankruptcy is the best solution for them to move ahead financially.
When people have taken enough advice regarding their financial situation, it can be very common for them to be faced with the problem of not being able to afford the personal bankruptcy proceedings that have been suggested as a possible solution to clear their personal debts.
Loans for Bankruptcy
Lewis Alexander is NOT aware of any companies that actually lend money to people who need to go Bankrupt. Adverts offering people loans for Bankruptcy are often misleading, these companies are praying on the vulnerable consumer who is often looking for something that does not exist, the offer sounds too good to be true.
Think about this for a moment, why would you lend money to someone who cannot afford to repay their existing commitments or outstanding credit accounts, the person requesting the bankruptcy loan is obviously at the end of the borrowing road due to defaulting on previous lending agreements or having been subjected to county court judgements or CCJ’s. These defaults and CCJ’s are not always due to the individual being ignorant towards the repayment of their credit accounts, most of the time they are due to genuine changes in circumstance that have led to a reduced income or loss of income should the change in circumstance be redundancy. The risk that the individual applying for a Bankruptcy loan presents is massive, why would anyone lend money to a person that cannot repay what they currently owe?
- The only solutions Lewis Alexander recommends to clients who need to find a loan to cover the initial costs to go Bankrupt in the UK are as follows,
Family Assistance – Are you fortunate enough to have a friend, close family member or relative that can lend you the money. This can be a very good way to borrow money to proceed with a voluntary petition for bankruptcy. This loan can be repaid at a rate that you will have agreed you can afford and the pressure of repayment can be somewhat eased, this is due mainly to the person lending you the money being in a position to afford to await repayment and also that person would usually accept that you are struggling financially, hence your need to go Bankrupt.
Disposable Income Management – Your disposable income is what you have left when you deduct your monthly living costs from your monthly income. Sometimes you will find that you have a negative disposable income and in these cases, people should concentrate on increasing income and reducing living costs. The disposable income you have each month may have been split amongst your current creditors or credit card accounts or personal loans. This money may not be enough to pay the minimum payments each month, however, if you were to stop paying the minimum payments for approximately 3 months, would that give you enough money in a lump sum to proceed with and pay the Bankruptcy fee? This is something that you should consider and advise your creditors of should you feel that you can save the money in a short enough period of time. Your creditors will understand that this is your only option if you are unable to obtain any family assistance.
When considering personal Bankruptcy in the UK, you will find that there are alternatives to Bankruptcy and if you would like to discuss your options in greater detail, please contact an advisor at Lewis Alexander today in confidence by calling free using 0800 018 6868. Calls from most landlines are free, mobile call charges may vary.
Information on bankruptcy in the UK is available online and a petition for voluntary Bankruptcy can be obtained from most local county courts.
- To speak with a Lewis Alexander financial management advisor about your alternative solutions to bankruptcy, please call 0800 018 6868 in confidence.
