Bankruptcy

Bankruptcy is often seen as a last resort for people with severe financial difficulties and given the serious consequences associated with this process, it is important to seek advice relating to the bankruptcy process.

Bankruptcy can have long-lasting implications – so make sure you get access to honest bankruptcy advice.  Our Bankruptcy Advice Service will ensure that you are fully aware of the implications and we’ll assess whether bankruptcy is right for you.

 

 

Can all debts be included within a Bankruptcy Order?

No.  Certain loans can’t be included, such as student loans, maintenance and fines.  If you have debts which are secured against property these cannot be included.  Our bankruptcy advice team will advise which ones can be included.

 

What happens to my assets during Bankruptcy?

The Official Receiver may dispose of assets to release money to repay to your creditors. Some items can be kept by you, however you will still have to tell the Official Receiver about them and they will make a decision as to whether you can keep them.

We will cover this in more detail when we provide you with bankruptcy advice.

 

What if I own a property?

If you have an interest in a property then it will be included as an asset.  This means that the Official Receiver may sell it but generally this happens if it is the only way to release money for your creditors.  If you own a property jointly with another person then you may be able to arrange for them to buy your share of the equity. Our bankruptcy advice team will explore what the options are.

If your home cannot be sold then the Official Receiver may apply for a charging order.

 

Can I apply for my own Bankruptcy?

Yes, this is called a “debtor petition” or “voluntary bankruptcy”.  You will be required to pay the Court Fee of £175 as well as the deposit to the Official Receiver of £525. We can provide bankruptcy advice and help you with this process.

 

Can I obtain further credit during the period of my Bankruptcy?

Yes, but if you obtain credit of more than £500 you must tell the creditor that you are an undisclosed bankrupt.  If you do not you will be committing a criminal offence.

 

Will Bankruptcy affect my job?

It could do.  There are certain professions that cannot be performed if you are an undischarged bankrupt.  The most common ones are police officers, members of the armed forces, solicitors, accountants and those involved in insurance sales.  You should also review your contract of employment to double check if there are any specific clauses which could prevent you from continuing in your role if you are an undischarged bankrupt.

If you are involved in the senior management of a company or are a company director you would need to obtain the court’s permission to continue in that role.

Our bankruptcy advice team will talk through these implications with you.

 

How do I know if Bankruptcy is right for me?

The Debt Advice Unit can provide you with bankruptcy advice and help to determine whether this is an appropriate option for you. 

 

What can the Debt Advice Unit do?

We will give you honest and balanced bankruptcy advice.

Our bankruptcy advice team will complete the court paperwork for you, which includes the bankruptcy petition and the statement of affairs.  As this involves a lot of work on our part and we have to be certain that we have a full picture of your situation, we charge a fee which will be explained when we assess your case.

 

Will the court grant my Bankruptcy petition?

Not necessarily.  The court may make a number of decisions which include:

• Agreeing to the bankruptcy petition
• Delaying the proceedings if it requires further information
• Reject the petition
• Reject the petition in favour of an IVA or a Debt Relief Order

With the outcome of the petition being uncertain, it’s important to obtain proper bankruptcy advice.  The Debt Advice Unit can provide this advice.

For bankruptcy advice and to see whether it’s the right option for you contact our bankruptcy advice team today.