- Details of your Bankruptcy will be advertised in the London Gazette and possibly local newspapers as well
- You will have to report to the Official Receiver and provide him/her with details of your financial affairs
- You may be required to make regular payments out of your income for up to three years
- Your Trustee in Bankruptcy will effectively own all your assets and will be obliged to realise their value for the benefit of creditors
- Your bank account is likely to be frozen for a short while until you can negotiate ongoing banking arrangements
- You are unable to obtain credit exceeding £500 without disclosing bankruptcy
- The Bankruptcy Order is registered with credit reference agencies for the following six years
- Your employment may be affected depending on what job you do
- You cannot be a company director or hold public office without leave of the Court
The bankruptcy order usually lasts for 12 months – but this may be extended if the Official Receiver has grounds to suspect that you are not properly co-operating with him/her. Once this time has passed, you will be discharged, meaning you are no longer in debt and your previous creditors cannot bring further action against you. In some cases, people still have to make payments from their disposable income for the full 3 years – but this does depend upon individual affordability. There are certain items that you can be held liable for regardless of time, such as unpaid court costs and orders made against you in divorce proceedings, as well as CSA arrears and student loans.
If you choose to go Bankrupt then your assets may be sold off to pay your creditors. Your home may be at risk and your credit rating will be affected. Some employers will not employ someone who has been declared Bankrupt. Let PJG Recovery give you real advice and information on all the options available to you.
Even with the above points, Bankruptcy is often the best course of action for many people with serious debt problems.