Bankruptcy Considerations
Not Private
Your bankruptcy is entered in the Individual Insolvency Register and is advertised in The Gazette – the official Government publication for public notices.
Loss of Assets
You could lose assets of value including your home or your share in it if jointly owned.
Anything of worth which could be sold to raise money to pay into the bankruptcy could be taken from you.
Exceptions include:-
- Household items essential for basic domestic needs – clothes, furniture, TV etc.
- A modest vehicle depending on circumstances.
- Items needed for trade or employment, such as tools and computing equipment.
- Money obtained from a student loan, if a balance of the loan remains payable.
Impact on business affairs
An assessment of your business will be made which may lead to it’s closure or sale, for the benefit of your creditors.
You may not be, or act as, the director of a limited company or be directly or indirectly involved in the formation, running and management of a limited company – without the permission of the court.
You can continue to trade subject to the statutory restrictions imposed during your bankruptcy period.
Impact on Employment
Bankruptcy could affect your employment.
Your employer or any potential employer may be unwilling to employ someone who has been bankrupt in a role of responsibility involving finance or the handling of money.
Before applying for bankruptcy you should satisfy yourself that this will not have a detrimental impact on your employment.
Some professional membership bodies don’t allow undischarged bankrupts to remain members.
The following are examples of jobs you can’t do whilst bankrupt:
- Charity trustee;
- Company director; (without court permission)
- Insolvency Practitioner;
- Justice of the Peace;
If you work in the following industries, you should check whether bankruptcy will have any impact on your job:
- Armed forces
- Anything cash handling, for example banking, payroll or security;
- Financial services, for example accountant, mortgage broker, stock broker or financial advisor;
- Law, for example solicitor or legal executive;
- Medicine, for example GP or dentist;
- Property, for example estate agent, letting agent;
- Police;
- Pub licensee;
Getting Credit When Bankrupt And later
You may not obtain credit of £500 or more in total, without disclosing your bankrupt status. This includes ordering goods on credit.
Entering into a Bankruptcy has a negative impact on your credit rating for 6 years, which is how long information is retained by the credit reference agencies.
When applying for further credit you may be asked whether you have ever been made bankrupt.
Bankruptcy Restriction Orders (BRO)
If the Official Receiver (who will administer your bankruptcy) considers you to be blameworthy, reckless or dishonest in your financial affairs and this contributed to your bankruptcy, a Bankruptcy Restriction Order can be made against you.
