cbi

Problems with payments are a very common scenario for thousands of UK residents; it can lead to many serious debt problems if not addressed correctly.

Problems with payments can arise in many different forms, if you are an owner of a small business; a dip in profits or a poor cash flow can lead missed payments. This can also be the case if you have recently lost your flow of income and your monthly payments are unchanged.

Bankruptcy is a financial resolution that may be considered by someone who can no longer afford to pay their debts. It is usually considered the 'last option' for people who have accrued a large amount of debt and cannot afford the repayments.

Once you have been declared bankrupt, your remaining debts are written off, however you should consider this option very carefully, weighing up the pro's and con's of other debt solutions that may be available to you.

A period of bankruptcy usually lasts for one year, although in some cases this is reduced.