Bankruptcy                                                                                                                                        

Bankruptcy is a most severe consequence of debt and should never be entered into lightly. For some people, however, bankruptcy may be the most appropriate solution. It can be the best way to repay what they can of their debt, write off the rest and make a fresh start.

Should I consider Bankruptcy?

If your debts are high and your income is low, it is worth finding out more about bankruptcy. Ask yourself:
·         Do I think my financial situation will get better in the foreseeable future?
·         Do I own property or valuable assets?
·         Can I realistically expect to repay my debt within a realistic time frame?
·         Do any of the alternative debt solutions look right for me?

If the answer to every question is no, there is a good chance bankruptcy could be right for you..

What are the advantages of Bankruptcy?

·         You will know you will be debt free – and when.
·         Your stress levels may go down once you know your debt problems are being addressed.
·         You will be protected from legal action by your creditors.
·         The debt you can’t afford to repay will be written off when you are discharged from bankruptcy (usually after 12 months).
·         You will be able to make a fresh start when your bankruptcy is over.

What are the disadvantages of Bankruptcy?

·         Your valuable assets, including your home, will almost certainly be sold, and the proceeds shared amongst your creditors.
·         Bankruptcy will prevent you from working in certain areas – you will not be able to work as a local government councillor or a company director.
·         Your bankruptcy will be advertised in newspapers.
·         Bankruptcy is a form of insolvency – a formal court driven process.
·         Your bankruptcy will affect your credit rating for 6 years.

You should weigh up the pros and cons of bankruptcy yourself, but you should not make any decisions without talking to a specialist. Before you make your decision, you need to understand how bankruptcy would affect you, and how those consequences differ from those of the alternative debt solutions.

How do I apply for Bankruptcy?

First of all, there is voluntary bankruptcy: You file a bankruptcy petition at the county court, and it is up to the district judge to decide whether or not to grant the bankruptcy. It cost £485, but the court fee (£150 of this) may be waived if you are on a low income or unemployed. Then there is involuntary bankruptcy: Any creditor can petition for your bankruptcy if they are owed £750 or more. 

What are the alternatives to Bankruptcy?

IVAs

An IVA is a real alternative to bankruptcy to those in debt of £15000 or more. Backed by government legislation, it allows you to reach a legally binding agreement with your creditors (administered by the insolvency practitioner) where you only need to pay back what you can afford over a fixed period, which is usually 5 years. Once the IVA is completed, any remaining debt is then written off, leaving you debt free.

Our specialist IVA division will deal with every aspect of your IVA, including all negotiations with creditors and the day-to-day administration of your agreement through to its completion.

Debt Management Programme

Capricorn Debt Management Solutions is helping many clients to turn unmanageable debts from store cards, credit cards, loans and overdrafts into an affordable, lower monthly payment. As well as managing all dealings with your creditors, we can often negotiate to freeze or reduce interest and charges meaning that your debt management programme can tackle the debt itself, rather than the interest alone.

With Debt Management you can

·         Stop demands from creditors.
·         Reduce or freeze interest and charges.
·         Take control of debts without a loan.
·         Pay one affordable monthly payment.
·         Know exactly where you stand.

Debt Consolidation Remortgage Solution

Why struggle with debts when you could release some of the cash tied up in your home and pay them off? Our debt consolidation remortgage brokers will advise on how you could pay off your debts with a remortgage – and still end up paying less each month than you pay now! Someime this may not suit all clients and it is worth looking at our calculator on our main site. If you enter in all your credit cards,loans and mortgage repayments it will print out a statement for you to consider.

Debt Consolidation Loan

Many clients come to us because they are paying out more than they need in interest due to the high rates on credit cards, store cards and other debts. By combining all these debts into a single, low rate consolidation loan you could reduce the interest you are paying and turn multiple debts into one single, manageable monthly payment.

Debt Management – Why go to a professional

If it seems debt management might be a good solution to your debt problems, you might wonder why people are on Capricorn Debt Management Solutions plan right now. Why don’t they manage their own debts?

Basically, anyone can talk to creditors and ask them to:
·         Accept lower monthly payments.
·         Freeze/reduce interest and/or
·         Waive charges.

But there is no guarantee they will be successful. Capricorn Debt Management Solutions, which is part of Capricorn Mortgages Ltd………….
·         Have been dealing with creditors since 1988 – we are used to negotiating with them, and we have excellent relationship with all major banks/building societies and credit card companies.
·         We are not emotionally involved – if your relationship with your creditors is not as good as it could be, you might prefer to have a professional dealing with them on your behalf.
·         We are used to dealing with the time consuming, organisational side of finance – paperwork, the phone calls, the maths. The more complicated your financial situation is, the more you might appreciate our service.
·         We can offer you a single point of contact – your own personal finance manager who will handle your debt management plan. You will be able to speak to the same person every time you have a problem or question.

*IVAs and debt management plans are not the only debt solutions available. Depending on your situation, you may wish to consider a debt consolidation loan, debt consolidation mortgage or trust deed (for residents of Scotland). You can discuss it with your debt advisor on 0121 370 2293 or 01785 258305.