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Bankruptcy

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When you are made bankrupt

• Go to the office of the Official Receiver and give all the relevant information regarding your financial affairs.
• Within 21 days of being made bankrupt provide the Official Receiver with a list of all your assets and what you owe.
• Be responsible for handing over your assets, all your books, records, bank statements relating to your property and financial affairs.
• Give information about assets or increase in income obtained during your bankruptcy.
• Stop using your bank account, building society or similar account immediately.
• You must not try to obtain credit.

What do I tell my creditors?

• The Trustees will arrange a meeting between you and your creditors to decide how much money will be shared out.
• It is important that you co-operate fully once bankruptcy proceedings are instigated against you.

What happens to my home?

• If you own your own home it may have to be sold to pay off some of the costs.
• In some cases a spouse may be able to put off the sale for up to a year. Spouses or joint owners should take legal advice as soon as possible.

Once you are bankrupt certain restrictions will come into effect

• It is a criminal offence for you to obtain credit of £250 or more, either alone or with another person, without disclosing your bankruptcy. This also applies to hire purchases and rental agreements.
• It is a criminal offence to carry on your existing business in a different name without telling those you do business with that you have a bankruptcy order against you.
• It is a criminal offence to promote, form or manage a company without the court’s permission.
• You may not hold certain public offices.
• You can open a new bank or building society account but you must inform them that you are bankrupt. If you have more in your account than is necessary for normal living expenses, your trustees can claim the extra to pay your creditors.

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