What you should know about Bankruptcy

Property

Once you have been made bankrupt all assets belonging to you – including your home – will come under the control of the Official Receiver who will act as your Trustee throughout the Bankruptcy proceedings. If you live with a partner and /or children then a period of 12 months may be allowed for other living arrangements to be made. At the end of the 12 month period, the property will almost certainly have to be put up for sale, enforced by a Court Order if necessary. If you own the property with someone else they may be able to make an offer to buy out your interest in the property from the Official Receiver.

What are the implications of Bankruptcy?

• You will lose control of your assets during Bankruptcy
• Your credit rating will be affected in the long term once you have been discharged from your Bankruptcy Order
• You will have to disclose that you have been made bankrupt when opening a new bank or building society account. The bank or building society may then impose conditions and limitations. Overdraft facilities or chequebooks must not be obtained as they are likely to be dishonoured. You must inform the Official Receiver, as your Trustee, of any funds available in the account which exceed your normal living expenses so that these can be distributed among your creditors.
• Your employment could be affected (E.g. If you are a lawyer, chartered accountant, financial advisor). You should always check your contract of employment.
• Certain debts such as student loans, child maintenance and utility bills are not covered by a Bankruptcy Order; therefore you will still be responsible for paying these debts.

You may not:

• Obtain credit of £500 or more alone or jointly without disclosing that you have been made bankrupt
• Conduct business directly or indirectly in any name other than that which you were made bankrupt
• Be involved directly or indirectly in promoting, forming or managing a company without the Court’s permission
• Hold certain public offices (e.g. Justice of the Peace, Member of Parliament)

When you are discharged from bankruptcy these constraints will end.

You can keep:

You can keep :

any tools, books, vehicles (if low value) and other items or equipment needed personally in your employment or business. You will also be able to keep your clothing, bedding, furniture and basic household items.