Once you have been declared bankrupt, you will lose control of your financial affairs and your assets as they will become property of your Official Receiver or Trustee. They will control what to do with your bankruptcy assets and if you can keep them. They will use the sale of your assets to pay towards the fees, costs and expenses of bankruptcy and to your creditors. One of the main bankruptcy disadvantages is that you are unlikely to keep any assets which are of value.
One Advice would always recommend that you seek bankruptcy advice, especially if you have high-value assets such as a home or a car. For expert advice about bankruptcy assets, please call our One Advice bankruptcy advisors on 0800 048 1752.
Although bankruptcy will put restrictions on your assets, there will be those which a Trustee will allow you to keep. These include vehicle and tools which you need for your business and basic household items such as clothing, furniture and bedding.
If your essential bankruptcy assets are of high value then they can be sold and replaced with a cheaper alternative.
This section has been split as follows to provide more indepth information about the effect that bankruptcy has on each of the following assets:
Not only does bankruptcy affect assets already gained, there is also a risk to your future assets during your bankruptcy order.
You will have to inform your Trustee about any assets that you gain during your bankruptcy order, such as windfalls or inheritance. This money will be seized by the court and used to pay your creditors. However anything gained after you have been discharged you will be allowed to keep, even if still have an Income Payments Order running.