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Bankruptcy in the South West: why are numbers rising?
Over the past decade, bankruptcy and insolvency numbers in the UK have been dramatically rising; with the South West being one of the areas worst hit. Comprised of coastal tourist destinations and seaside towns, the South West has faced elevated levels of insolvency post-pandemic.
Heavily reliant on employment and spending generated by domestic tourists, the lack of disposable income due to the cost-of-living crisis has resulted in a higher number of individuals and self employed business owners declaring themselves bankrupt.
As the coastal economy fails to keep up with the rest of the country due to decades of decline in the tourism, fishing and shipping industries, people living in South West seaside towns continue to fall into bankruptcy. A lack of investment, employment opportunities, and weak transport infrastructure has led to coastal towns like Torbay experiencing the highest insolvency rates in the UK.
Live in the South West? Find out how to go bankrupt.
Are you experiencing substantial financial difficulties and are searching for Bankruptcy Advice South West? Starting the journey can feel overwhelming, but with the support of Bankruptcy Guide, navigating the intricacies of the process becomes more manageable.
Providing expert guidance and bankruptcy advice in the South West, we walk you through the application process. There’s no need for lengthy bureaucracy.
Once we have assisted you with filling in the necessary form and you have made the fee payment, you're prepared to submit your application. Typically, your bankruptcy status will be confirmed within just two working days, provided you meet the eligibility criteria.
The Benefits of Bankruptcy
At Bankruptcy Guide, our Bankruptcy Advice South West service goes beyond simple guidance by providing a comprehensive overview of both benefits and risks associated with bankruptcy. Our experts ensure that you are well-informed, empowering you to make decisions that align with your financial future. The advantages of bankruptcy include:
- Unsecured debt written off giving you a fresh start.
- Legal protection from creditors alleviating the constant worry of communications and demands for further payments.
- Lasts for just 12 months. Most people are discharged from bankruptcy after 1 year.
- Only possessions of substantial value (such as a property or high-value vehicle) can be taken to settle your debts. Contrary to common misconception, you will be able to keep most of not all of your household possessions.
The Risks of Bankruptcy
It's important to note that while bankruptcy offers these benefits, it also comes with certain risks and consequences. Seeking professional bankruptcy advice South West is crucial to understanding the implications of bankruptcy is crucial before deciding to pursue it. Some of the risks associated with Bankruptcy include:
- Impacting your credit score making obtaining credit, loans or other financial arrangements more challenging.
- The ownership of your property and other assets will fall under the control of the Official Receiver who will determine which assets can be utilised to repay creditors and ensures an equitable distribution of available funds.
- You will face financial restrictions, including the inability to secure credit exceeding £500 without disclosing bankruptcy to the lender. You will also be restricted holding a directorial role in a company.
- Details of your bankruptcy will be recorded in the publicly accessible Insolvency Register and the Gazette Archive.
Frequently Asked Questions About Bankruptcy in the South West
A mandatory fee of £680 is required before submitting your bankruptcy application. This amount remains consistent regardless of whether you reside in South West or elsewhere.
The same fee is required with no exemptions or reductions, even if you are on benefits or have a low income.
While instalment payments are an option, you can't submit your application until the fee is settled in full.
Going bankrupt is unlikely to significantly affect your employment. In the majority of cases, you can continue with your job without disruption.
It's crucial to note that your employment status doesn't restrict your ability to choose to go bankrupt.
Whether you are currently employed, unemployed, receiving benefits, or already on a pension, bankruptcy remains a viable option to alleviate your debts.
When looking into bankruptcy advice South West, you might be wondering about the duration of bankruptcy.
Bankruptcy lasts for 12 months. At the end of this period you will be discharged. In situations where surplus income remains after meeting reasonable living expenses, you are likely to have to pay this to the Official Receiver in the form of an Income Payment Agreement (IPA). Such payments last 3 years.
The record of your bankruptcy is documented on your credit file for a period of 6 years from the commencement date. This leaves a negative impact on your credit rating. However, proactive measures can be taken to enhance your credit score once you are discharged. Utilising tools like a credit repair credit card can be a strategic step in this regard.
Choose Bankruptcy Guide for bankruptcy advice South West
Choose Bankruptcy Guide for bankruptcy advice South West. Recognising the sensitivity of bankruptcy, our commitment extends beyond legal expertise to provide empathetic support. With a focus on clarity and accessibility, we adeptly navigate the intricacies of bankruptcy, ensuring that you make well-informed decisions.
Bankruptcy Guide will be your trusted advisor for bankruptcy advice South West, offering a confidential and comprehensive approach to guide you through the process and towards a new financial beginning.
Contact us today or request a callback. Got a question? Get in touch.