How We Can Help
It is important to note that although bankruptcy is a very effective way of dealing with your debts, it will only be recommended once all other alternatives have been fully explored. We often receive enquiries from clients wanting to throw the towel in and go bankrupt but when we review their case we find that less drastic solutions can be implemented to resolve their problems. We will only advise bankruptcy where all other viable options have been explored. Many of our clients find the prospect of applying for Bankruptcy, or attending the court, difficult without assistance and recognising this we will assist with either the completion of the documentation, attendance in court or both.
Our objective is to alleviate much of the stress associated with what could otherwise be a traumatic event. We will guide you through the procedures and ensure the correct preparation and presentation of relevant documentation as well as answering any questions you might have regarding procedures and relevant costs.
Advantages and Disadvantages of Bankruptcy
| Advantages of Bankruptcy |
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| Disadvantages of Bankruptcy |
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Personal Restrictions in Bankruptcy
As an undischarged bankrupt you will find yourself under certain financial restrictions and depending upon your profession, could loose your job, but will most certainly be subject to the following restrictions:
- You may not obtain credit of £500 or more in total, without disclosing your bankrupt status. This includes ordering goods on credit.
- If you are a sole trader, you may trade under a new trading name, but you must advise those you come into contact with in your business dealings of your bankruptcy status.
- Industry professional rules make it more or less impossible for a bankrupt to practice as a Solicitor or Accountant.
- You may not practice as an Insolvency Practitioner
- You are not permitted to join the Police or Armed Forces while Bankrupt. There are implications for those in certain roles who become bankrupt whist already serving in Police/Armed Forces.
- You are not allowed to act as a Charity Trustee unless you are a director of that charity and have the court's permission to continue your role.
- You may not be, or act as the director of a limited company, or be directly or indirectly involved in the formation, running and management of a limited company.
Becoming bankrupt is not a criminal offense, however breaching any of the above restrictions is, and may lead to criminal proceedings. Your employer or any potential employee may be unwilling to employ someone in a role of responsibility involving finance or the handling of money.
