About Bankruptcy – UK Bankruptcy is a legal declaration that an individual cannot afford to pay back overwhelming debts when they are due. There a two means by which you may enter bankruptcy. An individual can chooses to make himself/herself voluntarily bankrupt, or can be made involuntarily bankrupt by a creditor who you owe at least £750. It is important to always seek bankruptcy advice before making a decision about going bankrupt, as there are penalties involved.
- You lose control of all assets including your home, life insurance and possibly pensions.
- You cannot obtain credit for over £250 without the permission from the lender.
- You cannot act as a company director for 12 months.
- You cannot take any part in the promotion, formation or management of a limited company (LTD) without the permission of the court.
- You cannot trade in any business under any other name unless you inform all persons concerned of the bankruptcy.
- You may not become a member of the local authority.
- Your credit is affected for many years after the annulment.
- You may be publicly examined in court.
- Bankruptcy is publicly advertised in your local press
