Financing out of Bankruptcy, IVA or Bad Debt

Filing for personal bankruptcy can sometimes seem the only way out of a complicated debts or difficult financial situation and indeed at times declaring yourself bankrupt can be a the most effective way to clear your debts and liabilities. However, you should know that there are alternatives some of which can be more suitable specifically if you own your own property.

If you are a home owner going bankrupt can increase the overall debt that you originally owed to your creditors. Fees and costs associated with going bankrupt are sometimes overlooked or are not properly understood especially when the individual is more often than not under immense emotional and financial stress.  If you have not properly understood the costs and fees of bankruptcy they can often be a big shock when you come to resolve or clear off your bankruptcy debt normally after 12 months when you receive your automatic discharge certificate.

To give a general overview of the fees for bankruptcy you should read the following. Firstly the government levies an ad valorem tax of 17% and there can be around another 20% of other fees and costs, typically made up of professional fees levied from Insolvency Practitioners and Trustee’s tasked to recover the debts you owe. Bankruptcy can easily add an additional 30% of the initial sum that you went bankrupt for.  

Therefore its always very prudent to explore the alternatives to bankruptcy. Enable Finance Ltd are specialist bankruptcy remortgage underwriters and brokers regulated and authorised by the Financial Services Authority. We specialise in providing re-mortgages to people looking to avoid bankruptcy or now need  to pay off their bankruptcy Trustee from a previous bankruptcy.

Enable Finance underwritten all re-mortgages centrally in our office so we"re able consider all bad credit and bankruptcy circumstances.