This page provides an overview of the bankruptcy consequences that you should be familiar with before going to court. If you need help considering bankruptcy or going bankrupt then please seek advice.
You can characterise the consequences of bankruptcy as follows.
Many people associate bankruptcy with financial consequence only, often neglecting the legal consequences of bankruptcy. Bankruptcy is a legal process and the legal consequences of bankruptcy can be very serious indeed. Please feel free to read through the information below but if you are considering bankruptcy and would like to establish whether or not you would be affected by them then please seek professional help.
Legal consequences of bankruptcy include:
It is important to note that your student loan will survive bankruptcy.
The bankruptcy consequences can affect your finances as follows:
If you are a sole trader then usually your business will be closed and any employees dismissed. If you intend to start back up in business then you must give consideration to the bankruptcy restrictions, they are consequences that can make business difficult.
Whilst you are bankrupt or subject to bankruptcy restrictions by way of an order or undertaking then you cannot act as a company director without the leave of the court.
If you are in a partnership at the time of your bankruptcy then the partnership will automatically dissolve upon the making of your bankruptcy order unless a deeds of partnership provides otherwise.
Reputation could discourage former and potential associates.
Lack of ability to raise credit could give rise to business difficulties.
The above details just some bankruptcy consequences. As you experience bankruptcy and try to recover from it you will realise that bankruptcy has more than financial and legal consequences. If you would like to know how bankruptcy will affect you personally then it is important that you speak to an adviser. You may also like to read about some of the effects of bankruptcy.