Making a Bankruptcy Order

If you would like to talk to us in person about what happens on the making of a bankruptcy order then please call us on 0800 804 7447 for a free confidential consultation.

You can also fill in our enquiry form and we'll get back to you.

The Official Receiver (a civil servant in the Insolvency Service) will be appointed to deal with the bankruptcy assets and to deal with all administration on the bankruptcy. Later it is possible in some cases for a Trustee other than the Official Receiver to be appointed to administer the bankruptcy in place of the Official Receiver.

On the Court making a bankruptcy order everything you own/belongs to you ( the bankrupts assets) forms part of the bankruptcy estate – as a bankrupt you do not have control of your assets. All potential assets must be disclosed to the Official Receiver or Trustee who will then decide whether you can keep them.

What are you required to do while you are bankrupt?

While you are bankrupt you have certain duties and responsibilities and these include providing information requested by the Trustee or Official Receiver to allow the bankruptcy estate to be administered and realised.

1. You cannot while you are bankrupt obtain credit over £500 without telling the person you are asking for credit from you are bankrupt
2. You cannot carry on business in a name which is different from that under which you were made bankrupt
3. You cannot be a Director of a company or be concerned with (directly or indirectly) in the management, promotion or formation of a limited company
4. You must not make any direct payments to your unsecured creditors; if you are unsure whether you should pay someone seek advice.

When you are made bankrupt you will be asked to provide details of your income and expenditure, if you have income which is in excess of that required for day to day living expenses your Trustee can request you pay these funds into your bankruptcy estate for a period of up to 36 months. It is for the Official Receiver or Trustee to establish what you need for your day to day living requirements within guidelines set.

What if any of your debts are joint with another person?

If you have debts which are joint with another person or have been guaranteed by someone on your behalf the creditor can usually continue to pursue the non-bankrupt party for payment. The joint owner of the debt or guarantor should seek their own advice as to whether they need to make arrangements to pay the debt.

What if you have transferred assets to someone before being made bankrupt or have paid one creditor and not another?

The Official Receiver or Trustee will review the timing of the transaction and in the event of payment to specific creditors in priority to others will look at the reasoning behind your decision to pay that creditor.

If you have transferred property or assets belonging to you to another person prior to going bankrupt or have paid one person in priority to another the Official Receiver or Trustee can in certain circumstances apply to reverse the transaction or request compensation for the loss of that asset or payment of that debt.

Where can you get additional information?

Alternative sources of general information:-

1. The Insolvency Service Website
2. Citizens Advice Bureau
3. R3

FAQ – Bankruptcy

Q. How long does bankruptcy last

A. Bankruptcy usually last no more than 12 months although if you fail to comply with requests made by your Trustee or the Official Receiver they can apply for your discharge from bankruptcy to be suspended which means your bankruptcy period stops running – time will only start running again once you comply. Alternately it is common for bankrupts to receive early discharge from bankruptcy which shortens the time to discharge in which case bankruptcy maybe shorter than 12 months.

Q. Once you’re discharged from bankruptcy does that mean you get your house etc back

A. Any assets you have at the date of bankruptcy remain as assets in your bankruptcy regardless of whether you are discharged or not. It is possible to buy assets out of the bankruptcy estate.

Q. How long can you not get credit for

A. You cannot get credit over £500 whilst bankrupt without notifying the person you are asking for credit from that you are bankrupt. After bankruptcy you can apply for credit although your credit rating will be affected by the bankruptcy.

Q What will happen to my bank account

A. It is usual for any existing bank accounts to be frozen and it may therefore be necessary for you to obtain a new bank account which would need to remain in credit

If you’re not sure what information you need or you want to discuss all your options please feel free to give our team a call on 0800 8047447 for a free confidential consultation.

Or complete our enquiry form and we will call you back