There are many financial restrictions during bankruptcy which you will have to abide to during your Bankruptcy Order, and it is important that you aware of these bankruptcy disadvantages. When your bankruptcy order has been made, you must comply with the Trustee’s requests and disclose information about your financial affairs. You will have to give a full list of your creditors and how much you owe them.
Your assets and financial affairs will no longer be under your control, and you must hand over your financial records, bank statements and any other papers which relate to your finances or your assets. You will have to stop using your bank, building society, credit card or similar accounts straightaway and these accounts are likely to be closed.
Restrictions during bankruptcy also mean that a bankrupt will not be able to open a new bank or building society account without first declaring that they have been made bankrupt in the past. You should still be able to apply for a basic bank account during your bankruptcy, but your Trustee will advise you on this matter. However, there will probably be limitations on your new account such as not being allowed to have an overdraft or a cheque book.
You must inform your Trustee of all your financial dealings during your bankruptcy order, such as money gained through inheritance or a windfall. As a bankrupt, you will not be allowed to obtain anymore than £500 credit without disclosing your bankruptcy status.
Further restrictions during bankruptcy mean that a bankrupt is unable to conduct business under an alias and must always use the name that they were made bankrupt with. They will not be allowed to be involved in anyway with promoting, forming or managing a company without the Court’s permission.
There are certain public offices which a bankrupt cannot hold, they cannot be a company director or practice certain professions.
For further information about the restrictions during bankruptcy, and how this could effect you, call our bankruptcy advice team now on 0800 048 1752.