Bankruptcy is a legal process and the legal consequences of bankruptcy can serious.
Please note that bankruptcy has more than financial and legal consequences so it is important to read and understand the following:-
- If you are a sole trader then usually your business will be closed and any employees dismissed.
- Whilst you are bankrupt or subject to bankruptcy restrictions
- If you are in a partnership at the time of your bankruptcy then the partnership will automatically dissolve upon the making of your bankruptcy order
- Reputation could discourage former and potential associates.
- Bankruptcy offences, which are punishable by imprisonment or fine or both
- Previous transactions being reversed or altered.
- Bankruptcy restrictions order, which prolong the restrictions of bankruptcy for between 2 and 15 years.
- An income payments order is a consequence that means you will still have to contribute to your bankruptcy debts for a period of 3 years
- Bank accounts for bankrupts are difficult to obtain free of charge. Visit the bank accounts page for more information.
- At the date of your bankruptcy you will lose control of your assets.
- You risk losing assets of value, including your home. Go to the bankruptcy and home page for more information.
- The bankruptcy order will remain on your credit report for six years making future borrowing difficult and expensive. When you apply for a mortgage you will usually be asked if you have ever been made bankrupt.
- Some professions, licensing bodies, associations and legal acts prohibit individuals who have had a bankruptcy order made against them or currently have a bankruptcy restriction undertaking or bankruptcy restriction order in place.