Personal Bankruptcy

What is bankruptcy?

You’re declared bankrupt if you’re unable to pay off your debts.

How does this happen?

There are three distinct ways in which you might find yourself declared bankrupt.

1. Having decided that you can’t pay off your debts, you can apply for your own bankruptcy.
2. A creditor to whom you owe at least £5,000 can petition for you to be declared bankrupt.
3. More rarely - if you’re in an Individual Voluntary Arrangement and find yourself unable to pay what’s due, then the IVA’s supervisor might petition for bankruptcy.

How we help

• We begin by working with you to analyse your precise financial circumstances.  We’ll then explain your options and whether bankruptcy, or another option, is the appropriate path to take.
• When appropriate, we can help you annul your bankruptcy order.
• We can help you deal with your current trustee or the Official Receiver.
• If you‘re in danger of losing your home, we can help advise you of the options open to you.

What does personal bankruptcy mean for me?

• You may be unable to be employed in specific areas - for example, as a solicitor
• Any assets you have of value, you’ll have to give up. This might mean your home.
• You’ll be barred from applying for credit of more than £5,000 without informing the lender of your bankruptcy. In truth your credit rating will fall because of your bankruptcy so obtaining credit is unlikely
• You won’t be able to act as a company director or create, manage or promote a company.
• 12 months from the date you were made bankrupt, you’ll be discharged from bankruptcy, provided that there has been no evidence of criminal, dishonest or careless behaviour. If there is such evidence, then the Official Receiver may apply to the court for a Bankruptcy Restriction Order. This could maintain the bankruptcy for anywhere between 2 and 15 years.