Take expert advice on bankruptcy to know where you stand

Take expert advice on bankruptcy to know where you stand

The recession of 2008 has challenged the most successful companies not only in Britain but across the globe. Who could have imagined that one of the greatest banks of our times, Lehman Brothers, would file for bankruptcy protection? And that is not all. Study the fourth quarter insolvency figures in the UK released by Insolvency Service. In 2009, just short of 80,000 individuals were declared bankrupt. In fact, a total of 35,574 people in England and Wales were declared insolvent in the final three months of 2009, which in itself is a record high. Company failures totalled around 50,000 a significant rise on the 2008 figures.

The experts predict that situation is further going to worsen before easing up. This is because many people and organisations are already at borrowing limits and have over the last couple of years, pulled together all the available cash they could get. The lack of cash flows is one major reason why companies and individuals have been forced to declare bankruptcy. The situation is so grim that the banks are reluctant to fund even good profitable ventures. It is little wonder then there are so many people are seeking advice on bankruptcy.

When times are tough, the natural inclination of people is to close their eyes or turn the other way in the hope that the problems will disappear. If by sticking your head in the sand, you feel your troubles will go away, you are only kidding yourself. If things are out of control, you have to take steps to put them right and seeking impartial, professional bankruptcy is the first step in the direction.

Going by the above insolvency figures, if you are in serious debt, you are not alone. Bankruptcy may be an ideal way out if your liabilities far outweigh your assets. It may have long lasting consequences but realise that bankruptcy is not the end of the world. You may have to give up your assets including your home and face financial restrictions, but in all probability, can be discharged and free from bankruptcy within a year or less.

You also need to realise that you may have better options available such as an IVA or a debt management plan. However, if you have run out of cash completely bankruptcy may be the right option for you. You can seek debt advice to understand the options you have. Talk to a debt management company or debt advisors and they will also inform you of the latest rulings, legislation and advice on bankruptcy in the UK. There are many debt management companies offering free advice and debt help. Make sure you take the proper professional advice before deciding on the best debt solution.

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