Bankruptcy

Bankruptcy is a process that allows you to deal with debts you are unable to pay. Although the bankruptcy proceedings place certain restrictions upon you they will:

• free you from your debts
• ensure that any assets are shared out fairly among your creditors

A court official called an "Official Receiver" is appointed to protect your assets from the date of the order and to investigate your affairs and conduct leading up to the bankruptcy.

Where can I get help with bankruptcy?

There are three main types of organisations that can provide help; namely charities, debt consultancies and legal professionals. Cost and quality vary significantly so you may want to get in touch as a starting point.

What should I do before bankruptcy?

Firstly make sure that you have a good read of this website, although it only provides an overview it is essential that you understand this information before you declare yourself bankrupt.

Secondly make sure you have received advice on bankruptcy and understand exactly what it is you are getting into. There may be no going back once you declare yourself bankrupt. For information on how to get professional help please visit the advice on bankruptcy page.

Who can go bankrupt?

In the UK any individual can go bankrupt; there are different procedures for companies and partnerships.

What happens during bankruptcy?

During bankruptcy you will be subject to bankruptcy restrictions and you will be investigated by the Official Receiver. You will also have to comply with the duties and obligations placed upon you under insolvency law, failure to do so will mean that you will be in contempt of court and liable to be punished accordingly.

You will also experience the consequences of bankruptcy and effects of bankruptcy, which can be different for each individual depending on the circumstances of you and your family.

How long will bankruptcy last?

Your bankruptcy will last until your discharge, which in most cases will occur automatically on the first anniversary of your bankruptcy.

Bankruptcy duties & obligations

As a bankrupt you will have certain duties and obligations placed upon you once the bankruptcy order has been made. This includes but is not limited to:

• Delivering up possession of your estate
• Delivering up all books, papers and other records of which you have possession or control and which relate to your estate & affairs. This obligation continues after bankruptcy.
• Providing an inventory of your estate
• Attending on the official receiver or trustee at such times as they may reasonably require
• Providing accounts for the last 3 years if you have run a business
• Providing notification of property acquisitions and income increase within 21 days

If you do not comply with the duties placed upon you by law then you will be in contempt of court and liable to be punished accordingly.