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. We have put
together a summary of the bankruptcy restrictions to help you
decide if bankruptcy is right for you.
Bankruptcy 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
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.
- 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
- 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
Remember - it is a criminal offence to mislead or attempt to
conceal information from the Official Receiver.
The following are criminal offences for an undischarged
- 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.
Additional bankruptcy restrictions:
- 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
- Bankrupts cannot be a trustee of a charity or a pension
- When opening a new bank account the debtor must advise that
they are bankrupt and conditions may be imposed.
Now that you know about the restrictions in bankruptcy, take our
online debt test to see what your options are and whether
bankruptcy is suitable for you:
bankruptcy an option for me? »