Bankruptcy, whilst an intimidating word, is simply a legal process through which an individual is declared unable to pay their debts. Indeed, depending on the circumstances, for some bankruptcy represents a welcome opportunity for a fresh start.

A person can become bankrupt voluntarily or following an application to the court by unsatisfied creditors and normally lasts for three years and one day. If you have debts that are mounting and becoming unmanageable, or you are being pursued by debt collectors and considering bankruptcy, a consumer debt agreement, or a personal insolvency agreement, before making a decision you should seek qualified legal advice as soon as possible to gain a better understanding of the options that are available to you.

If you have been issued a bankruptcy notice by a creditor, it is imperative that you seek legal advice immediately. You have 21 days from the date of service of a bankruptcy notice before your failure to respond is deemed an act of bankruptcy.

Bankruptcy can have significant ramifications for a person’s earnings, property, employment, prospects of attaining credit and even travelling overseas. Whilst there are numerous services that offer debt solutions, management or consolidation plans, many aren’t run by solicitors or accountants and often offer a one-size-fits-all approach that is not tailored to your personal circumstances. There may be more options available to you than you think to get control over your unmanageable debts.