I think really the question should be, ” what is the right debt solution for me?”
I spoke with someone the other day who was in desperate trouble and looking for a solution for all his debts. He approached his Local Advice Centre to discuss his debts. After a short session it was suggested that he go bankrupt, and was shown how to go about it.
So after taking this advice, he did go bankrupt! This is now when his real problems started.
Property at Risk in Bankruptcy
Firstly, he was not aware that as a property owner, the property would be taken into account when going bankrupt. It actually turns out that he had quite substantial equity in the property. As a result of this the property was sold, and the equity was distributed amongst his creditors.
Inheritance and Bankruptcy
Then not very long into his bankruptcy a relative died leaving him a sum of money. These funds were also seized and distributed among the creditors.
Had this person sought some additional advice, I am sure the outcome would not have been bankruptcy immediately. May be at a later date this would be the right solution for him.
A series of debt solutions could be used to achieve a better result!
I would always recommend that if anybody is looking to any form of financial advice, they get as much information from as many locations as possible. This way they really will be better informed when it comes to making the right decision or choosing the product(s) that is right for them.