Bankruptcy FAQ

• How do I declare myself Bankrupt?
• Will I lose my home?
• What happens if I inherit money or have a windfall?
• Will I lose my job through Bankruptcy?
• What happens to my Bank Account & Credit Cards?
• Who will find out about my Bankruptcy?
• Can one of my Creditors make me Bankrupt?
• I have a car on finance; what will happen to it?
• Can I apply for further credit whilst Bankrupt?
• What happens about my bills?

Will I lose my home?
If you own your own home this will normally be sold to release any equity that it may have. You will also normally be given 12 months to sell the property. If it is jointly owned the other party will be given the option to buy out your equity.

What happens if I inherit money or have a windfall?
This will be used to pay off your Creditors.

Will I lose my job through Bankruptcy?
Some professions do not allow their members to be Bankrupt, such as Chartered Accountants, Solicitors, Local Authority employees and Government officials. Some employers who offer a bonus scheme will not pay this to a Bankrupt.

What happens to my Bank Account & Credit Cards?
Your Bank, Store Card, and Credit Card Accounts will be closed. Any balances will be paid to your Creditors or debts added to your Bankruptcy order.

Who will find out about my Bankruptcy?
All of your Creditors will be informed and it is a legal requirement to be advertised in your local paper.

Can one of my Creditors make me Bankrupt?
Yes, if you owe more than £750 (unsecured) to any single Creditor they can make an application to make you Bankrupt.

I have a car on Finance; what will happen to it?
This will be returned to the finance company.

Can I apply for further credit whilst Bankrupt?
Yes, but no more than £500 unless you granted special permission by the Official Receiver.

What happens about my bills?
All of your utility suppliers will have been notified when you made your petition so you will need to come to another agreement with them. Most suppliers will normally fit a key or pre payment meter of some sort. It is also not unusual for them to request a deposit.