The bank has repossessed my house, but I will still owe them money when they’ve sold it. I also have credit card and personal loan debts. Friends have suggested that I declare myself bankrupt, but is it a good option?
Bankruptcy generally only lasts for one year, after which you could potentially walk away from your debts without paying anything. It’s possible you would be ordered to pay your creditors an amount each month for up to three years. Contact the Citizens Advice Bureau’s debt counselling service to look at your finances in detail. If your debts don’t exceed £5,000 another option might be to apply for an administration order, which would prevent any further action on the part of your creditors as long as you paid a regular sum into court.