What are the pros/cons of bankruptcy?
It can be very stressful to go through bankruptcy. When you do, every aspect of your finances is scrutinised. In the UK it lasts a year and if you have enough money (ie in coming money more than out going) then you do have to pay some of the debt back, but only what you can afford, which is good as if there’s not much money coming in you may pay nothing back, or it could reduce repayments if you’re having trouble paying some back. Then after a year any debt is written off. Your credit rating is wiped clean, but the fact you have been bankrupt does show. It is then very hard to get any credit and have to work your way up. Also during the year you can’t have any credit or debit cards, and can just have a cash card account, but only some banks give accounts t people who are bankrupt. Also it does cost to go bankrupt, you usually have to pay about £200.
