What is Bankruptcy?
Bankruptcy is a permanent way of dealing with debts that you cannot pay. Bankruptcy proceedings eventually free you from overwhelming debts however any assets that you have may be sold and the proceeds shared amongst your creditors. Bankruptcy now lasts just one year after which time you can make a fresh start, albeit there will be financial restrictions which will last for several years. It is therefore not a decision to be taken lightly, or without the benefit of professional advice.
What are the effects of Bankruptcy?
- Details of your Bankruptcy will be advertised in the London Gazette and local newspapers.
- You will have to report to the Official Receiver and provide him with details of your financial affairs.
- You may be required to make regular payments out of your income for up to three years.
- Your Trustee in Bankruptcy will effectively own all your assets and to realise their value for the benefit of creditors.
- Your bank account is likely to be closed.
- You are unable to obtain credit exceeding £500 without disclosing bankruptcy.
- The Bankruptcy Order is registered with credit reference agencies for at least six years.
- Your employment may be affected depending on what job you do.
- You cannot be a company director or hold public office.
If you choose to go bankrupt your assets maybe sold off to pay your creditors. Your home may be at risk and your credit rating will be affected. Some employers will not employ a bankrupt. Let Phillip Gill and Co Insolvency Practitioners give you real advice and information on all the options available to you.
What are the alternatives to Bankruptcy?
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