debt solutions south west information menu

DSSW is authorised by the Ministry of Justice to provide claims management advice.

DSSW is fully licensed by the Office of Fair Trading to provide debt management and credit broking advice.

Debt Solutions Southwest Ltd is a debt management business based in the South West of England, providing a full debt management and credit advisory service to individuals and businesses.

Bankruptcy arises when an individual is declared bankrupt by a Bankruptcy Order issued by an appropriate court. The order could arise in the following ways:


1. On the application of a creditor (to whom you must owe at least £750), who must show that you are unable to pay your debts, or have no reasonable prospect of doing so.


2. By you, the debtor, on your own application.


3. As a result of a debtor not meeting the terms of an IVA agreement.


On being made bankrupt, the consequences for the debtor include the following:


1. You loose control of all your assets to your Trustee in Bankruptcy. This will usually include your home (or most of your equity in your home) and your motor vehicles.


2. You cannot obtain credit for £500 or more without telling the lender you are bankrupt and then getting the lender’s agreement.


3. Your bankruptcy is made public and your credit rating will be adversely affected for at least six years.


4. You may be publicly examined in court.


5. You cannot manage a limited company, or act as a company director.


6. You will be prevented from practicing in various professions, or from holding certain positions.


7. You cannot trade in any business under any other name (than your own) unless you inform all persons concerned of your bankruptcy.


8. You will need to co-operate with your trustee in bankruptcy, including telling him about any assets that come into your possession during your bankruptcy. Failure to do this could lead to your being arrested.


1. Most of the consequences of bankruptcy, mention above, are disadvantageous to a debtor, in particular the fact that your credit rating is significantly damaged.


2. Many people believe that the ‘stigma’ of bankruptcy is it major disadvantage, but this is a matter of personal opinion.


3. For business people, the prohibition on managing limited companies and the loss of reputation can be financially very difficult but, on the other hand, many entrepreneurs have risen from bankruptcy and gone on to make considerable fortunes.


4. Depending on your profession, going bankrupt could be particularly damaging.


5. Creditors can undertake a full investigation of your affairs.


6. Many people believe that if you are bankrupt you don’t have to make any payments to your creditors. This is not so, as usually a bankrupt will have to make payments to his or her creditors under an ‘Income Payments Order’. However, the good news is the monthly payment amounts are usually less in bankruptcy than under an IVA and are usually for a maximum of three years.


7. Not all debts can be included in your bankruptcy. For example, student loans are not written off in a bankruptcy.


1. The major advantage of bankruptcy is that the debtor obtains peace of mind. Your debts are taken away from you and your affairs are handed over to a Bankruptcy Trustee or Official Receiver. The long battle with creditors should come to an end.


2. Your payments to creditors will usually account for less of your disposable income than they are in an IVA and will be for three years rather than five.


3. You could be discharged from bankruptcy in as little as 12 months, depending on your circumstances, although your payments will still probably continue for three years.


4. You can keep your ‘reasonable’ household items.