Bankruptcy
How Do I Declare Myself Bankrupt?
If you are insolvent and wish to declare yourself bankrupt you make an appointment with your local Court, complete the appropriate forms and pay the Court fee. The forms to petition for your own bankruptcy can be obtained from www.insolvency.gov.uk
How Long Will I Be Bankrupt?
Your bankruptcy will normally be discharged automatically after one year although the Official Receiver may apply to Court for an earlier discharge if your affairs are straightforward. In certain circumstances your bankruptcy discharge could be suspended by the Official Receiver if you failed to cooperate with your Trustee or the Official Receiver.
What Are The Bankruptcy Restrictions?
A bankrupt must not:-
- Obtain credit for more than £500 from any person without disclosing to that person the fact that he is bankrupt.
- Trade a business in any name other than the name is which he was declared bankrupt.
- Act as a company director or be involved with the management of a company without leave of the Court.
- Hold certain public offices.
What Happens To My Assets?
You will lose your assets which will be realised for the benefit of your creditors. You will be able to retain certain assets such as your domestic goods and chattels and the tools of your trade.
Will I lose My House?
You will lose the equity in your house which will be realised for the benefit of your creditors. However, a Trustee in Bankruptcy will only sell the house as a last resort and will usually give you time to raise funds to buy back your equity in the house. Provided you continue paying your mortgage and are able raise sufficient funds to buy back the equity, you should be able to keep your house. If you have any concerns with this issue please contact us for further advice.
Will I Have To Pay Anything To My Creditors?
The Official Receiver or Trustee in Bankruptcy will examine your income and expenditure and if he assesses that you have a surplus over that which is required to meet your reasonable needs, he will require from you monthly income payments for a period of up to three years. This will be either by agreement with your or if agreement can not be reached by way of a Court Order.