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National Debtline

Advice you can trust

Personal bankruptcy

If you cannot afford the payments to your creditors or your assets are worth less than your total debts, you are likely to be insolvent. Bankruptcy may be a suitable option for you. Get debt advice about the advantages and disadvantages of all your options before deciding which option to take.

man fixing a bike | free debt advice

Your budget

  • Don't forget that you need to work out a budget before you tackle your debt problems.
  • After you have worked out your income and outgoings you will be able to see how much you have left over.
  • If you do not have enough spare income to pay your creditors, a personal insolvency option could be suitable for you.

Bankruptcy

  • Bankruptcy is a way of ending your liability for debts you cannot pay.
  • Business debts can be included if you are personally liable for them. It will normally mean that your business will close.
  • Any assets you own may be sold to raise money to pay your creditors.
  • There are advantages and disadvantages to bankruptcy that you need to consider carefully.

Business insolvency

  • Personal insolvency options deal with any personal debts you cannot afford to pay.
  • If you have business debts that you cannot pay, you may need to use a business insolvency option.
  • Business insolvency options can have very different consequences for you and your business.