Please note that are some seriously negative implications of bankruptcy. These implications should be seriously considered before going down the route of personal bankruptcy.

Bankruptcy, should only be used as a last resort, since it too could have serious implications for your long term financial position. Borrowers struggling with debt need to be well aware of the long-term implications of becoming a bankrupt and not think that it is an easy way of being released from debt

Implications of bankruptcy

Once you have been made bankrupt all assets belonging to you come under the control of the Trustee, including your home. There are many implications of bankruptcy to take under consideration they are not just financial, some are emotional and social implications.

If you live with a partner and/or children then a period of twelve months may be allowed for other living arrangements to be made. At the end of the twelve-month period, the property will almost certainly have to be put up for sale, enforced by a Court order if necessary. If you own the property with someone else they may be able to make an offer to buy out your interest in the property from the Official Receiver.

Other 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 an 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.

Please note that Bankruptcy is a serious proposition and there are alternatives that should be considered sych as an IVA - Individual Voluntary Arrangement which involves a negotiating a deal between you and your creditors under which a proportion of you debt is written off entirely.