What happens after you are declared bankrupt

Once you are declared bankrupt, certain restrictions and processes begin.

The Official Receiver

The Official Receiver (OR) takes control of your bankruptcy. They will contact you, usually within 2 weeks, to discuss your finances. They assess:

• Whether you have any assets that can be sold
• Whether you have surplus income for an Income Payments Agreement (IPA)

Bankruptcy restrictions

While bankrupt (usually 12 months), you:

• Cannot get credit over £500 without telling the lender you are bankrupt
• Cannot act as a company director
• Cannot manage a business under a different name without telling people you are bankrupt
• Cannot work as a chartered accountant or solicitor (without permission)
• May face other restrictions in certain professions

These restrictions end when you are discharged (typically after 12 months) unless your bankruptcy is extended due to dishonesty.

Your home

If you own a home, the OR may consider its value. You may be able to keep your home if:

• There is no equity (negative or zero equity)
• A partner or family member can "buy out" your share
• You negotiate a 3-year charging order instead of forcing a sale

Get advice before filing if your home situation is uncertain.

Discharge

You are automatically discharged from bankruptcy after 12 months. After discharge, most of your bankruptcy restrictions end, and most debts are written off. The bankruptcy stays on your credit file for 6 years from the date of the order.

After discharge

You may be asked to attend an interview with the OR. You may have to make payments under an IPA for up to 3 years if you can afford it.