Bankruptcy Advice - Restrictions

Bankruptcy Advice

Bankruptcy is something that should not be taken lightly. Whilst bankruptcy may be appropriate in some circumstances it must be remembered that there are significant consequences and restrictions.

The duties of a bankrupt
While you are bankrupt you must co-operate fully with the Official Receiver. It is essential that you are completely honest and open with him about your assets and liabilities at the date of the bankruptcy order. If your financial circumstances change at any time before your bankruptcy you must advise the Official Receiver immediately, for example a change in employment or a windfall.

You must:

provide details of all your assets and hand them over to the Official Receiver if asked to. This may include your property but only your share of it.
hand over all documents, books and records relating to your financial affairs.
attend a meeting with the Official Receiver or his staff if requested to do so.
attend a meeting of creditors if one is called.
give any other information that may be reasonably requested.

Remember - it is a criminal offence to mislead or attempt to conceal information from the Official Receiver.

The restrictions on a bankrupt
The following are criminal offences for an undischarged bankrupt:

obtaining credit of £500 or more, either alone or jointly with another person, without disclosing your bankruptcy.
carrying on business in a different name from that in which you were made bankrupt without telling all those involved the name in which you were made bankrupt.
forming or managing a limited company or acting as a company director without the court's permission.
A bankrupt may not hold certain public offices. For example, they may not act as a magistrate or an MP.

In addition:

Some professionals are prevented from practising if made bankrupt, including a Chartered Accountant or a solicitor.
Credit ratings may be affected for a number of years to come.
Bankrupts cannot be a trustee of a charity or a pension fund.
When opening a new bank account the debtor must advise that they are bankrupt and conditions may be imposed.

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