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Life After Bankruptcy

Bankruptcy is the last resort for people and businesses alike. Filing for bankruptcy grants you an automatic stay. This means an automatic block on your debt, which prevents your creditors from collecting payments. 

What happens after bankruptcy?

Your bankruptcy status normally lasts for a year. Your non-essential assets like certain properties that you own and any excess income are utilized to compensate your debt. At the end of the bankruptcy, most of your debts are canceled.

While you’re declared as bankrupt, you are restricted under such circumstances. Some of the significant restrictions as follows:

  • You are prohibited to secure over £500 worth of credit unless telling them you’re bankrupt.
  • If you reside in Northern Ireland, you are prohibited to go out of the country without consent. 
  • You are restricted as a company director or to become one.
  • You can’t buy a council house through the ‘right to buy’ system 

Moreover, the Accountant in Bankruptcy in Scotland can extend the scope of your restrictions through a ‘bankruptcy restrictions undertaking’ or ‘bankruptcy restrictions order’. This can happen if there are allegations of reckless behavior and dishonesty. 

Following are some of the examples of reckless behavior:

  • fraudulent behavior which includes false information to obtain credit
  • inability to cooperate with the official receiver
  • increasing your debts by abandoning or neglecting your business
  • selling assets cheaper than their value or giving it away
  • lending money that you can afford to pay
  • paying selected creditors

Bankruptcy differs from where you live in the UK. If you are in Scotland, you might need to check on the details of sequestration in our post since the information listed as follows outlines the process of bankruptcy for those who live in England, Wales, and Northern Ireland.

When completing your duties in bankruptcy, you will be granted a discharge, which stipulates how you completed it. Though you obtain a type of discharge, bankruptcy records will remain in your credit record for several years. The positive side is that you can wipe out your unsecured debts.  

Furthermore, there are significant details that you need to look into after your bankruptcy.

Things to do after bankruptcy

Bankruptcy Discharge. Figure out how you can get back with stabilizing your finances after a bankruptcy discharge.  

Bankruptcy Register. Since bankruptcy is a public information, you will have to determine the period your record will remain in the Individual Insolvency Register. Also, you have to figure out if who can access this information or details.

Bank Accounts After bankruptcy. It is not new that after bankruptcy, your bank account(s) will be closed. This means that opening a new account from other banks is an option for you. If you need some more details on how you can open a new account after bankruptcy, check this GUIDE for you.

Credit Loans. Bankruptcy has a huge impact on your credit score, making it hard for you to obtain credit or loan of any type.

FREE Bankruptcy Consultation with Experts

Being bankrupt is a huge undertaking that you can’t consider without any advice from a finance expert. So, before filing for bankruptcy, make sure to seek advice from our team of experts. Besides, we offer you the most suitable debt solution that you need. You can either get advice online or call our debt experts on 0800 193 1024.