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.

Money Helper (formerly The Money Advice Service) is a free service set up by the Government to help people make the most of their money. If you would like to learn more click here. is not regulated and is for fact-finding only. We can help assess your circumstances and point you to someone who can provide available options that suit your debt criteria.

If an individual meets the required criteria for an IVA based on our packaged case, this will be passed to one of our partnering Insolvency Practitioners to get direct advice. If the individual does not meet the criteria for an IVA, The Insolvency practitioner is able to provide contact information for other third-party organisations that offer advice on other available debt solutions. For full details view our Privacy Policy.

If you decide that an IVA (Individual Voluntary Agreement) is not the best option for you after we have prepared the necessary information, you can opt out of the process and have all of your details removed. We receive a fee from the third party that we refer you to for introducing you and for the work we have completed. However, you will not be responsible for paying this fee. The third party will contact you directly to continue the process of your IVA application or to explore other solutions, but only with your permission after we have introduced you.