| Bankruptcy
Bankruptcy is a way of distributing
a person's assets among his creditors. The term of bankruptcy
is normally less than one year and can be as short as
6 months
A bankrupt is normally dealt with by
an Official Receiver initially but the administration
of the estate may later be handed over to an Insolvency
Practitioner
For free initial information and advice
without obligation, you can freephone 0800 068
7154
Restrictions in bankruptcy
A bankrupt cannot :
»
Obtain credit in excess
of £500 without disclosing his bankruptcy
»
Continue to trade with the
same business without the consent
of
his trustee
»
Sit as an MP or Member of
the House of Lords
»
Act as a Company Director
Other restrictions
The bankrupt may be asked to pay surplus
funds out of future income to meet the bankruptcy debts
»
Without exception, the bankrupt's
home is always included
»
Stigma and bad publicity
can result, as the making of a bankruptcy
order
is always advertised
Assets exempt from
bankruptcy are as follows :
»
Any furniture and effects
or items needed to maintain a basic standard
of living
»
A modest motor vehicle if
needed for work
»
A pension from a company
pension scheme is normally exempt.
However,
please be aware that a personal pension scheme may be
looked
at by the trustee, especially if contributions into the
scheme have been high
»
Tools of the trade
»
Assets held in trust on
behalf of another person
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