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What is Bankruptcy?
Bankruptcy is a way of dealing with debts that you simply cannot afford to pay. Once you are declared bankrupt, any assets that you have (property, cars, shares etc) could be used to pay off some or all your debts. After a period of time (usually within one year) any outstanding debts are written off and you will have a ‘clean slate’.
The effects of Bankruptcy
After the bankruptcy it is very unlikely that you will be able to obtain credit. The bankruptcy will be recorded with credit reference agencies for at least six years and even after this, you may be asked when applying for credit whether you have ever been declared bankrupt.
Details of your bankruptcy are usually published in a trade paper called 'The London Gazette' and may also appear in the 'Classified' section of one of your local papers.
Ordinarily, you will have to close any bank or building society accounts you have. There are several banks which will allow you to have basic bank facilities even after you have been made bankrupt, although usually without access to credit. It is very important to tell whichever bank you choose to open an account with that you have been declared bankrupt. It is then up to the bank to decide if you can have any form of account with them. We can make suggestions as to which banks may allow you to bank with them.
Certain professions have policies regarding employing bankrupts. It is very important to check your employment contract to see if bankruptcy is mentioned. If you belong to a professional body (e.g. solicitors, accountants etc) you may be ‘struck off’ if you are declared bankrupt.
INFORMATION
If you would like more information on anything about your debts, complete a call-back form and we'll talk you through it.
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Bankruptcy