Bankruptcy

• You lose control of your assets. This includes just about everything you own. Some personal possessions, household furniture, clothing, tools of the trade and certain pension entitlements are exempt
• If you own any equity in a house, this will almost certainly be sold.
• You will also lose any further assets you acquire during this period.
• If you own a business, this could be sold and your employees dismissed.
• If you rent a property with arrears due, your Land Lord could commence a possession action to remove you from the property
• All fees from the insolvency service, courts and any trustee are taken out of your assets. Bankruptcy can be very expensive.
• You must allow all of your financial affairs to be scrutinised. If irregularities are found, criminal charges can be brought against you.
• Certain types of debt can not be written off. These include student loans, fines, maintenance / child support payments, debts from personal injury claims, debts brought about through fraud, and certain other court orders. Once the discharge period is up, you will still owe these debts.
• Your name will be published in the London Gazette, local news papers and viewable on the Insolvency Service Website.
• You can not obtain credit over £250
• You can not act as a company director
• You can not have any involvement with a limited company (LTD) without prior permission from a court of law
• You can not trade in any business under any other name unless you inform all the persons and creditors concerned with your bankruptcy
• You can not practice as an Accountant or Lawyer
• You may not become a member of parliament or local authority
  

After the bankruptcy discharge period has ended :

• You will find it very difficult to obtain credit (e.g. a mortgage) for many years after your debts have been annulled (written off).