Bankruptcy London, UK: Humiliation Instiller & Business Killer

By: Victor Smithston | Posted: 15th June 2007

Unlike the modern day US views on bankruptcy, the Brits look upon bankruptcy as an extremely

humiliating and unfair non-solution to indebtedness. There is a stigma attached to all forms of

bankruptcy in the UK that really never goes away from someone who has filed. If you possess any

substantial assets, bankruptcy should definitely be considered only as a last resort. The new

Enterprise Act is sometimes said to discharge bankruptcies within a twelve month time frame, yet

this is rarely experienced.

In the UK, bankruptcy is a very public matter. For years it will be difficult, if not impossible,

to obtain a mortgage or get any credit. The bankruptcy petition will be posted in your local

newspaper as well as the London Gazette. Your creditors, bank, building society & landlord will

all be informed immediately. Any business that you own will be immediately shut down. All future

assets including: inheritances, insurance payouts/maturities, equity in property, windfalls, and

possibly even pensions will be lost.

Not enough? All of your bank accounts and credit cards will be immediately closed. Anything that

you are purchasing on lease or HP will be immediately returned to its owner. The minimum period

for bankruptcy is 5 years. This can continue for up to 15 years in cases of repeat bankrupts.

Professional and business status will be lost. Also memberships to many societies and

associations will also be terminated.

Individual Voluntary Arrangements (IVAs) are the prevalent discourse to bankruptcy. These are

legal contracts made with a mandatory 75%+ of your creditors to alleviate financial distress.

They stop chasing letters. They bypass court action. They are not made public. Compared to the

alternative of bankruptcy, IVAs seem like the way to go, if you happen to be a Brit in financial

peril.

Written by Victor Smithston. Find more information on
http://www.ableconsulting.co.uk/>Bankruptcy London UK This article is free for republishing
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Tags: bank accounts, new enterprise, creditors, financial distress, last resort, bankruptcies, stigma, london uk, individual voluntary arrangements, indebtedness, minimum period, legal contracts, bankruptcy petition, substantial assets, windfalls, business status