Bankruptcy 'should allow people to keep what they need'

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Bankruptcy 'should allow people to keep what they need'

Tue 27th Apr 2010

A person who is saddled with debt may find that declaring themselves bankrupt allows them to keep the things they need for day-to-day living, even if they have to sell their assets, a finance expert has asserted.

The spokesperson for the Consumer Credit Counselling Service (CCCS) noted that the benefits of bankruptcy include the chance to write off unsecured debts, which can give people peace of mind.

In addition, individuals should find that they are able to hang on to essential items and perhaps more.

The CCCS representative remarked: "If your property is in negative equity, where your mortgage is more than the property is worth, you may be given the opportunity to keep your home."

However, they stressed that it is not all positive, since it will affect people's ability to get bank accounts, does not include secured debts and may get in the way of certain jobs, such as being an accountant or a lawyer.

The CCCS offers advice to a variety of individuals about budgeting, the use of credit and debt repayment.

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