Published in Debt Advice Features on Saturday, December 09 2006

There are obvious advantages to bankruptcy as well as the disadvantages, however here is an article outlining the advantages to bankruptcy.

- Bankruptcy will relieve you from the stress of dealing with your creditors.
- After you are declared bankrupt, your debts are dealt with and you do not have to make payments or discuss the accounts with your creditors this is taken care of by a third party known as a Trustee
- You will normally pay less than you owed prior to your bankruptcy order.
- Once the bankruptcy order is made against you the creditors attitude will change towards you also.
- Your creditors will be forced into receiving less money than the debt was originally.
- Once you are free from the bankruptcy restrictions, or discharged you will have a completely fresh start, you will be able to start to rebuild you financial status again.

The main advantage to bankruptcy is that if you are in a position where you physically cannot repay your debts due to unfortunate change in circumstance, you are trying to look after your family and receiving constant demands from creditors, then bankruptcy will offer a huge relief to this type of position.

The Disadvantages