Going bankrupt can be brutal – your whole financial state will be spread out before you. Whilst necessary, this can be daunting. The receiver will go through any assets to see what can be sold to pay off debts. They will not sell anything that is not worth much financially but may consider selling assets such as houses or cars.
Essentially you should consider:
♦ Losing any assets of value.
♦ If you own a home, it will likely be sold unless there is negative equity.
♦ If you own a business, it could be sold, and your employees fired.
♦ If you have rent arrears, you could be asked to leave by your landlord.
♦ You must declare yourself bankrupt when applying for credit of more than £500.
♦ All your financial affairs will be examined in detail, with the possibility of you facing criminal charges if any irregularities are discovered.
♦ You will be unable to hold certain public office positions and practice various professions, including that as a solicitor and accountant.
♦ You cannot be a company director, nor can you trade under a name other than your own.
♦ Your assets may still be administrated by the Trustee or Official Receiver even after you have been discharged. If your income is high enough, you will be asked to pay your debts for three years.
♦ Going bankrupt can affect your immigration status.
♦ The public and future employers can search for your bankruptcy online.
♦ If you inherit money or receive a compensation payment, these funds could be put towards the debt.
♦ If your pension fund is higher than your debt, you may not be allowed to go bankrupt.
♦ Your bank account will typically be frozen.
Most jobs are not affected at all if you go bankrupt. However, if you work in the following industries, you should check whether bankruptcy will have any effect on your job:
♦ Armed forces
♦ Police force
♦ Security
♦ Financial services (banking, accountancy, stockbroker)
♦ Law, for example, a solicitor or legal executive
♦ Medicine e,g., a GP or dentist.
♦ Property (estate or letting agent).
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