How do I avoid Bankruptcy?

Voluntary bankruptcy is the legal proceeding that follows a petition of bankruptcy

We receive a lot of calls and emails from the public asking; "How do I avoid bankruptcy?"

Money Advice Direct debt advice team have been helped 100,000s of people avoid bankruptcy by offering debt advice and alternative procedure such as an IVA or debt management plan. If you would like to speak to an adviser about how to avoid bankruptcy and the possible alternatives to it, then please contact us by calling us on free phone 0800 074 6918.

Take advice early to avoid the pitfalls of bankruptcy

By speaking to one of the advisers at Money Advice Direct as early as possible people can avoid bankruptcy or avoid the horror of house repossession. The bankruptcy advice team is available 24 hours a day, 365 days per year.

There are alternatives to bankruptcy that can offer people in debt a fresh start. The UK Insolvency remit is to avoid bankruptcy and always treat it as a last resort.
If we haven't answered all your bankruptcy and debt questions here, you can call one of the advisers on 0800 074 6918 and speak confidentially about your scenario. Our debt advisers are qualified and experienced in debt advice so can give you all the information you need if you want to avoid going bankrupt.

Details on how to avoid bankruptcy
This section of the website looks at the alternatives to bankruptcy for those looking for a way to avoid going bankrupt.

IVA – Individual Voluntary Arrangement

1. An IVA is a scheme introduced by the Insolvency Act (1986) and is a procedure that can get a person out of debt, help you avoid  bankruptcy, and gives a person in debt financial freedom from their creditors. Pleas note that approval is subject to the agreement of 75% (in value) of your creditors.
2. An IVA is a real alternative to bankruptcy for people with debts of over £17,000. IVAs have been used by debtors to avoid bankruptcy for many years now and are a proven and successful way to get of debt. Although the consumer may become debt free (subject to terms and conditions) at the end of the IVA period, the effect on consumer's credit rating is likely to remain on file for 6 years.
3. An IVA is a strong alternative to bankruptcy as the returns to creditors are much higher and it can allow a peaceful method of paying back a percentage of the debts. Please note that only unsecured debts included within the IVA may be written off at the end of the period and that those not included such as secured debts, Government fines and child support payments will remain.
4. All parties actually prefer a person to avoid bankruptcy as the whole process is far less aggravating and costly.

Reasons why we advise to avoid bankruptcy

• Bankruptcy usually results in high value assets being sold.
• Bankruptcy has an public social stigma in most communities
• Bankruptcy can affect some employment roles.

Other methods to avoid bankruptcy

• Avoid bankruptcy via a consolidation loan
• Avoid bankruptcy by maximizing your income.
• Avoid bankruptcy by taking out a debt management plan
• Avoid bankruptcy by taking advice as early as possible

If you wish to discuss the bankruptcy procedure and understand how to avoid it please complete the following form or telephone freephone 0800 074 6918. If you are looking to avoid bankruptcy. The UK Insolvency Helpline is able to offer help via telephone or online. The service offers help & advice online from leading debt experts.

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What is bankruptcy? | Bankruptcy explained | The bankruptcy process | The effects of bankruptcy | The disadvantages of bankruptcy | How do I petition for my own bankruptcy? | What happens after bankruptcy? | What are the alternatives to bankruptcy?| Can my bankruptcy be reversed? | Can my bankruptcy be cancelled? | New legislation - the Enterprise Act 2002? | Frequently asked questions | Bankruptcy additional facts | UK Personal Bankuptcy | Bankruptcy Records | Bankruptcy Advice | What happens when you visit the Official Receiver's Office? | What happens to my home in bankruptcy? | What happens to my pension in bankruptcy? | When will my bankruptcy end? | How am I made Bankrupt? | Where is the Bankruptcy Order made? | Who will deal with my bankruptcy? | Who do I need to tell if I go bankrupt? | What are your duties as a bankrupt? | What effect will Bankruptcy have on your credit rating? | Payment to your creditors in Bankruptcy | What happens to your assets in bankruptcy? | What is a bankruptcy restriction notice? | What is a form J restriction? | What happens in bankruptcy if I rent my house? | What happens to your life assurance policy in bankruptcy? | What happens to your business in bankruptcy? | What happens to your wages in bankruptcy? | What are bankruptcy restrictions orders and undertaking? | Debts you have incurred after you have been made Bankrupt | What are the advantages of going Bankrupt? | What are the disadvantages of going Bankrupt? | What are the implications of  Bankruptcy? | Jersey - a guide to Bankruptcy Law | Bankruptcy Law | Student Loans and Bankruptcy | Bankruptcy Forms | Avoid Bankruptcy | Business Bankruptcy | Accountant in Bankruptcy | Bankruptcy Lawyers | Bankruptcy Search | Bankruptcy in the UK | Declaring Bankruptcy | Filing for Bankruptcy | How to go Bankrupt | Insolvency Practitioners | Voluntary Bankruptcy | How do I avoid Bankruptcy? | Consequences of Bankruptcy | Borrowing after Bankruptcy | Bankruptcy and Student Loans | Annulling the Bankruptcy | Bankruptcy - The Court | Bankruptcy Bank Accounts | Debt Resolution Forum | Mortgage after Bankruptcy | Personal Bankuptcy | Bankruptcy Mispellings