This is the second in the short series on Bankruptcy.
Will I lose my job?
If you go Bankrupt then you will be automatically excluded from some professions…
Member of the Law Society, Estate Agent, Insolvency Practitioner, Stock Broker or
Pub Licensee. We have helped all these professions deal with their debt issues via alternative solutions.
Please call us on 0808 160 5577 for an alternative solution.
For some other professions, dismissal would be at your employer’s discretion.
Check your employment contract or consult your HR department or union.
I am frightened that the petition is advertised?
Bankruptcies have always been reported in the legal notices of your local paper and in the London Gazette. This was not an attempt to ‘name and shame’ but rather gives any creditors who are not named on the petition the opportunity to come forward. Now it is possible for you to ask the Official Receiver not to advertise and of there is no real reason to do so, he will not.
The Official Receiver will contact all of the creditors named on the petition.
The Official Receiver may also contact your utility providers. This is because your utility services may be provided on credit.
The Official Receiver will also contact your landlord or mortgage provider. As long as you pay the rent or mortgage, there should be no change in your circumstances.
If you want help with your bankruptcy call us on 0808 160 5577.
I understand there are restrictions, what are they?
You will not be allowed to obtain credit of more than £500 without telling the lender about your Bankruptcy.
If you run a business then you must not trade under a different name without disclosing the name under which you went Bankrupt.
You cannot act as director of a limited company or be involved in forming, promoting or managing a limited company unless you obtain permission from the court.
You may not hold various public offices and cannot act as the trustee of a charity or pension fund.
For the vast majority of people the restrictions will cause little problems, if you need a personal view call us on 0808 160 5577.
How long will the restrictions last?
The restrictions will normally apply until you are discharged from Bankruptcy. You will usually be discharged within 12 months. Most of our clients are now discharged in 6 months.
The Official Receiver can ask the court to make a Bankruptcy Restrictions Order (BRO). A BRO would make you subject to the restrictions for a further two to fifteen years. The Official Receiver will only do this if you have acted in a dishonest or blameworthy manner either before or during the Bankruptcy.
How long can I expect the Bankruptcy to last?
Bankruptcy usually lasts for twelve months. Many of our clients at Help With Debt are now being discharged in 6 months. This will be the case of the affairs are simple and straight forward.
During the first twelve months of Bankruptcy, you will be an ‘un-discharged Bankrupt’.
Whilst you are an ‘un-discharged Bankrupt’ you will be subject to certain restrictions.
As long as you comply with the restrictions then after twelve months you will be discharged from Bankruptcy.
The Bankruptcy will be recorded on your credit file for six years from the day on which the court made the Bankruptcy Order.
If you wish to take advantage of our expertise in this matter please call us 0808 160 5577.
Can the Official Receiver take my pension?
You will need to inform your Official Receiver about all of your pension arrangements. These are stated on the Statement of Affairs that you fill in.
State Pensions and pensions that have been approved for tax purposes by HM Revenue and Customs would not be included in the Bankruptcy. We do not find that pensions are an issue in bankruptcies that we deal with.
What will happen to my credit rating?
Bankruptcy Orders are kept on your credit file for six years.
The Bankruptcy can be deleted from your credit file if…
A Bankruptcy Order has been annulled by the court.
You provide the Credit Reference Agency with the certificate.
Will I be able to use credit in the future?
Until you are discharged from Bankruptcy, you cannot apply for credit of more than £500 without telling the lender that you are Bankrupt.
If you have a Bankruptcy Order on your credit file, you will find it more difficult to obtain credit.
A Bankruptcy Order may affect the interest rate that you are offered for any new credit agreement.
Will I be able to have a bank account?
When the Bankruptcy Order is made your bank account will be frozen.
You will have to stop using your cheque books and bank cards immediately and then give them to the Official Receiver.
You will need to make alternative arrangements for receiving and making payments.
Money in your account will be counted as an asset in your Bankruptcy estate.
Overdraft accounts will be counted as debts.
The Official Receiver can release money from your account for living expenses.
After the Bankruptcy Order has been made your bank may agree to unfreeze your account but they do not have to do so.
You may open a new bank account but you must tell the bank that you are Bankrupt.
It is up to the bank or building society to decide whether to offer you an account.
You may not obtain overdraft or credit facilities without telling the bank that you are Bankrupt.
You may only be able to open a basic bank account.
If you have trouble opening a bank account the Official Receiver may be able to advise a course of action.
It is also possible to open a Post office account or start a savings account at a Credit Union.
Will my Bankruptcy affect anyone else?
If you have joint debts that are not paid in full when you go Bankrupt, the other person will still have to repay the outstanding balance. Where there are joint debts, we would expect to advise your partner on their options, which may not be bankruptcy.
If someone has acted as a guarantor for a debt included in your Bankruptcy, the guarantor is liable for the full amount.
A Bankruptcy Order is only listed on your individual credit file. It does not appear on or affect the credit file of your partner.
A Bankruptcy Order would affect future applications for joint credit.
I’m self-employed. How will Bankruptcy affect me?
If you are self-employed or run a business then you may be able to continue trading. This will be important if you need the business to live. However, you must abide by the Bankruptcy restrictions.
You must disclose your Bankruptcy before obtaining credit of more than £500.
You must not trade under a different name without disclosing the name under which you went Bankrupt.
Contact Steve Thatcher of Help With Debt (UK) Limited a total debt solutions company.
For all further reading see http://www.helpwithdebtuk.com
For personal contact email firstname.lastname@example.org
If you have any debt problem whatsover either personal or corporate make Steve your first call all advice is free. Finally if in the UK and you need a friend to speak to call 01162171406