Considering Bankruptcy on Benefits? Bankruptcy Guide Can Help
It is normal to worry that going bankrupt will affect your benefits. A common concern is whether you will lose any of the money you receive each month. Whether the majority of your income is made up of benefits or just a small portion, we are aware of your apprehension.
Our Bankruptcy Guide advisors will provide you with extensive advice specific to your situation. This will mean you are able to understand exactly how going bankrupt on benefits will affect you and your family’s income.
You will be able to feel confident about whether going bankrupt is the right way to manage your debts.
Understanding Bankruptcy on Benefits
Before going bankrupt on benefits, you need to find out exactly how the money you receive will be affected.
You need to understand whether or not any of your benefits are likely to be cut. In addition, you will want to know if you will have to hand over any of your money to the Official Receiver.
Speak to one of the Bankruptcy Guide experts and we will give you precise details about:
How Bankruptcy will Affect your Benefits:
Going bankrupt on benefits will have no affect on the level of any payments you receive. Your money does not go down because you are bankrupt. That said, the amounts you get are usually treated as income and need to be listed as such on your application.
If you get benefits in addition to your wages, you may still have to make a payment towards your debts each month if you have an overall surplus.
You don’t need to worry if benefits are your only source of income. In these circumstances, none of the money will be taken from you. In the same way, money you or your family members receive in the form of PIP or DLA will not be touched.
Suitability of Bankruptcy:
Not everyone who receives benefits should deal with their debts with bankruptcy. Going bankrupt on benefits might be the right option for you. However, before making any recommendation, we will always carry out a full review of your circumstances. We will take into account, how any assets you have might be affected (such as your car), the amount of debt you owe and your preferences for repaying what you owe.
Alternative Options:
There are other options besides bankruptcy. These include a Debt Relief Order (DRO), IVA and Debt Management Plan (DMP).
We'll consider all of these with you and discuss the positives and negatives specific to your situation. This guarantees that you have all the information necessary to decide on the best course of action for your unique circumstances and long-term financial objectives.
Benefits of Working with Bankruptcy Guide
Actually taking the steps needed to actually go bankrupt on benefits is scary. How do you know you have got all the information right on your application? How do you answer the Official Receiver’s questions? What can you expect after that?
This is where Bankruptcy Guide’s unique Assistance Services comes in. Our service provides you with support from completing your application right through to the moment you are discharged.
Free Consultation: We provide a free examination of your financial circumstances. We provide detailed answers to all your questions regarding bankruptcy on benefits and whether this option is suitable for you.
Experienced Experts: We have 25 years of experience in successfully guiding those receiving benefits through the bankruptcy process. We support you through your whole year of bankruptcy during each crucial step.
Tailored Assistance: We recognise that every circumstance is individual. Together, we will create an individual strategy that takes into account your unique requirements and overcomes your concerns. This ensures every piece of advice given is specific for you.
We don’t operate a call center. You will have the direct mobile number of the expert dealing with your case.
Frequently Asked Questions About Bankruptcy On Benefits
Yes, you are still able to go bankrupt if you are getting unemployment benefits. Being in receipt of any type of benefits does not stop you going bankrupt.
If you are unsure about anything, contact us and speak to one of our advisors. Bankruptcy Guide is able to evaluate your particular circumstances, including unemployment benefits, and provide you with advice on the best course of action, be it bankruptcy, DRO, IVA or an alternative.
Absolutely not. If you go bankrupt, none of your benefits payments will be affected at all. You will continue to receive the same amounts in exactly the same way. You do not have to tell any of the benefits agencies that you are bankrupt. Your eligibility for benefits does not change because you are bankrupt.
This depends. If your only income is benefits, you don’t have to worry. You will not have to make any further payments towards your debts once you are bankrupt. None of your benefits will be taken from you.
Where your benefits are paid in addition to your wages, the Official Receiver will review your income and expenses budget. If you have a legitimate surplus, you will have to pay this towards your debts for 3 years I the form of an IPA. That said, if you receive benefits to supplement your income, it is extremely unlikely that you will have any surplus.
For an expert, confidential consultation, get in touch with Bankruptcy Guide now! We'll support you through each step from deciding how best to deal with your debt to assisting you through the entire bankruptcy process if that is what you decide.
Bankruptcy On Benefits Guidance
Although bankruptcy on benefits can seem impossible, there is still hope. Speaking to one of the experts at Bankruptcy Guide means you will be able to examine your options, understand exactly what to expect from the bankruptcy process, and make well-informed judgments regarding managing your debt. Don’t hesitate to get in touch to bring your debt problems under control.