Bankruptcy is the insolvency procedure of handling the estate of an individual following a bankruptcy order of the court. In the main bankruptcy proceedings are initiated by the individual himself or by a creditor by presenting a petition to court. Upon making the order the individual is known as an undischarged bankrupt and all of his assets belong the bankruptcy estate initially under the control of the official Receiver and latterly by the Trustee in Bankruptcy.

In addition to the trustee’s main duty of getting in,recovering, realising and distributing the bankrupt’s estate, the procedure also examines the causes of failure as well as investigating pre bankruptcy transactions.

Bankruptcy is no longer a draconian procedure and is designed to balance the interests of creditors with those of the individual wishing to be given the chance to rebuild their life.

For more information or to arrange your initial FREE consultation please telephone Mark Botwood on (01902) 393007.


What is the duration of my bankruptcy?

In the majority of cases discharge is 1 year or earlier from the date of the bankruptcy order. There are exceptions.

How does it effect my family home?

Your home may have to be sold by the Official Receiver or Trustee to pay towards settling your bankruptcy debts. However if the property is jointly owned then the Official Receiver or Trustee is only entitled to your beneficial interest in the property. It is possible for the beneficial interest and/or legal title to be transferred, at a negotiated figure, to you, your husband, wife, partner, a relative or friend and would recommend that you contact either the official Receiver or Trustee as soon as possible after the Bankruptcy Order is made especially in view of the increasing property prices.

Can I work when I am bankrupt?

Yes, however during your bankruptcy period the Official Receiver or Trustee will expect you to make contributions to creditors of around 50% of any disposable income. If agreement cannot be reached an application can be made to the court by the Official Receiver for an Income Payments Order.

What personal restrictions are there?

Some of the main restrictions are:

Credit – It is an offence to obtain credit either jointly or alone for a sum greater than £500 without informing the person from whom the credit is obtained that you are an undischarged bankrupt

Acting as a director – A bankrupt is automatically disqualified from acting as a director whilst an undischarged bankrupt. You are also restricted from acting directly or indirectly in the promotion, formation or management of any company except with court leave.

Sole tradership – An undischarged bankrupt cannot engage in any business in a name other than that in which he was adjudged bankrupt without disclosing his name in which he was adjudged bankrupt to all persons with whom he enters into any business transactions.