Bankruptcy

Anyone can go bankrupt, including individual members of a partnership. There are different procedures for dealing with companies and for partnerships themselves. When a bankruptcy order has been made you must:

• Provide the Official Receiver with a full list of your assets and details of what you owe and to whom;

• Look after and then hand over your assets to the Official Receiver together with all your books, records, bank statements, insurance policies and other papers relating to your property and financial affairs

• Tell your trustee about assets and increases in income you obtain during your bankruptcy. (Note: you are legally obliged to inform your trustee of any property which becomes yours during the bankruptcy. Such property includes lump sum cash payments that you may receive, for example redundancy payments or money left in a will);

• Stop using your bank, building society, credit card and similar accounts straightaway

• Not obtain credit of £250 or more from any person without first disclosing the fact that you are bankrupt.

• Not make payments direct to your creditors.

You may also have to go to court and explain why you are in debt. If you do not co-operate, you could be arrested.

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