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In the case of bankruptcy, a bankruptcy order is made by the court on the petition of either a creditor or debtor. Once granted, the order falls within the public domain and is advertised in the London Gazette and a local newspaper. The Official Receiver becomes the receiver and manager of the bankrupt's estate following the order.

Bankruptcy positives

  • You will be completely cleared of many debts but not damages for personal injuries; family liabilities, such as maintenance arrears; liabilities under criminal law, such as fines or frauds; student loans; and some benefits among others
  • You can be discharged in as little as a year but if you have previously been made bankrupt then discharge could take longer
  • You might not have to make any payments unless an income payment order is made

Bankruptcy negatives

  • People could find out, as the bankruptcy will be advertised in your local paper and the London Gazette
  • Any business you won may be closed down and the staff fired
  • You will lose valuable assets, including your home, if a partner does not buy your share
  • You lose any assets you gain during the bankruptcy, such as a legacy, insurance settlement or endowment
  • If you rent, your landlord will be told and the tenancy may be terminated, depending on your lease
  • All you bank, building societies and credit card accounts will be closed
  • Luxuries or expensive items you have leased or bought on HP may have to be returned to the owner
  • The bankruptcy remains on your credit history for at least six years, making it difficult for you to borrow money after you have been discharged
  • The trustee can ask the court to make an income payment order, which is the amount you must pay each month towards your debts
  • Bankruptcy fees are added to your debts
  • If you are guilty of misconduct while bankrupt, a bankruptcy restriction order (BRO) or bankruptcy restriction undertaking (BRU) may be taken out against you - these restrictions apply after you have been discharged and can last for up to 15 years
  • Bankrupts cannot do some jobs such as for example being a company director or a member of parliament
  • Some debts, such as court fines or child maintenance, are excluded from a bankruptcy
  • If you have joint debts, the other person may still be pursued

For a local appointment contact:

Aylesbury 01296 509188
Birmingham 01216 078461
Burton on Trent 01283 599193
Coventry 02476 578323
Derby 01332 639340
Malvern 01684 893327
Manchester 01619 308958
Oxford 01865 389426
Reading 01183 733005
Redditch 01527 539305
Solihull 01216 078462
Southampton 02380 308569
Stafford 01785 318081
Stoke on Trent 01782 607199
Tamworth 01827 849120
Walsall 01922 438147
Wolverhampton 01902 488189

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