Bankruptcy
Bankruptcy is an option that often has to be considered when an individual cannot pay their debts as they fall due. A first time bankrupt with debts will generally receive their discharge one year after the date of the bankruptcy order (there is the possibility that in some cases the bankruptcy discharge period will be less than one year).
Information about a bankruptcy stays on record for at least six years and a bankruptcy restrictions order can remain there for as long as 15 years. Lenders see these and mark you down when scoring your credit application, because they fear you may not honour your obligations to them if you have failed with others in the past.
Bankruptcy is a very serious matter. Declaring yourself bankrupt is a decision that shouldn’t be taken lightly as there are implications that can affect you for a number of years.
If you are declared bankrupt you can expect to:
Have your situation advertised in the local press and the London Gazette.
Be required to fill in numerous forms and have an extended meeting with the Official Receiver, and, if appointed, a Trustee in Bankruptcy who will thoroughly investigate your affairs.
- Have any business you own immediately closed and any employees dismissed.
- Lose any assets of real value including your home, life insurance and possibly pensions
- Lose any assets you may acquire during the term of your bankruptcy such as inheritances, insurance settlements, growth of asset value in your home.
- Have your building society, creditors, landlord etc immediately informed.
- Have all bank accounts, credit cards etc closed. Anything you might be leasing, or buying on hire purchase, such as your car will be immediately returned to the owner.
- Lose professional and business status, have some employment opportunities prejudiced, face rejection from many associations and societies.
What are the implications of bankruptcy?
- You lose control of your assets.
- You cannot obtain credit for over £250 without the permission from the lender.
- You cannot act as a company director.
- You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
- You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
- You may not practice as a Charted Accountant / Lawyer.
- You may not act as a Justice of the peace (JP).
- You may not become a member of parliament.
- You may not become a member of the local authority.
- Your credit is affected for many years after the annulment.
- You may be publicly examined in court.
If you feel that Bankruptcy may be the right route for you our trained advisors & insolvency partners will provide you with the right advice & a suitable way forwards.
For more information call: 0845 658 8830
One Debt Solution
PO Box 15125
Halesowen
West Midlands
B62 2GE
Website: www.onedebtsolution.co.uk
Email: info@onedebtsolution.co.uk
Consumer Credit License Number: 597146/2
Data Protection License Number: Z995138X
Regulated by the Ministry of Justice in respect of regulated claims management services. Auth. No: CRM17394